The growing institutional interest in Bitcoin is expected to create "demand shocks" in 2025, which could significantly boost Bitcoin prices. According to Sygnum's Crypto Market Outlook for 2025, institutional capital inflows, including from major players like BlackRock, Fidelity, and Morgan Stanley, will drive the next crypto bull market. These inflows are expected to have a multiplier effect, with each $1 billion of net inflows raising Bitcoin prices by 3-6%.
Bitcoin's limited liquid supply and the reflexive nature of the market—where rising demand pushes prices higher—will further fuel its upward momentum. Institutional investment in Bitcoin, especially through spot ETFs, is anticipated to play a major role. The research also highlights the importance of pro-crypto regulations, particularly in the U.S., with hopes for a complete regulatory framework that would bring stability to the industry.
However, the analysis also points out potential risks that could hinder Bitcoin’s growth, such as inflation, geopolitical instability, and the dominance of Tether's stablecoin. Despite these uncertainties, the forecast suggests that Bitcoin could maintain strong momentum through 2025, particularly with institutional support and continued ETF inflows.