BlockBeats reported on December 12 that a report from Sygnum Bank, a cryptocurrency-focused asset management company, suggests that a surge in institutional capital inflows could cause a “demand shock” for Bitcoin in 2025, potentially leading to price increases. Sygnum’s “2025 Crypto Market Outlook” report states that institutional capital flows have a “multiplier effect” on BTC’s spot price.
For every $1 billion in net inflows into spot trading platform exchange-traded funds (ETFs), prices are expected to rise by about 3-6%. This trend is expected to intensify in 2025 as large institutional investors, including sovereign wealth funds, endowments, and pension funds, increase their Bitcoin allocations.
Sygnum also noted that this trend will only extend to alt-cryptocurrencies if the United States passes legislation supporting cryptocurrency adoption, with the Financial Innovation and Technology for the 21st Century Act (FIT21) and the Payment Stablecoin Act being particularly important for cryptocurrencies.
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