According to a report on December 6, after historically breaking the $100,000 milestone, the price of bitcoin has plummeted significantly. But this is not enough to dampen the bullish enthusiasm of cryptocurrency bulls.
Standard Chartered recently stated that bitcoin breaking through $100,000 is just the starting point for its broader rebound, with the price of the cryptocurrency expected to double next year as institutional funds are anticipated to flow in significantly.
Geoff Kendrick, global head of digital asset research at Standard Chartered, reiterated the expectation that the price of bitcoin will rise to $200,000 by the end of 2025. Previously, he accurately predicted that bitcoin would rise to six figures.
“If U.S. retirement funds, global sovereign wealth funds, or potential U.S. strategic reserve funds accept bitcoin more rapidly, we will become more optimistic,” Kendrick wrote in a report released on Thursday.
Kendrick initially predicted in 2023 that bitcoin would rise to $100,000, primarily based on the expectation that regulatory changes and reduced volatility would encourage institutional investor inflows.
With the increasing demand for MicroStrategy—the publicly listed company holding the most bitcoins—and bitcoin exchange-traded funds (ETFs), this trend is expected to continue until 2025.
Kendrick expects that the incoming Trump administration will stimulate an increase in institutional demand. Trump pledged during his campaign to implement cryptocurrency-friendly policies and proposed the idea of establishing a national bitcoin reserve, which has excited the crypto industry.
In addition, the new options trading for bitcoin ETFs should accelerate the 'long-only' demand from pension funds and retirement accounts.
Kendrick stated that so far, hedge funds and investment advisors dominate the reported ETF holdings, while pension funds account for only 1%.
“It is worth noting that the total amount of U.S. retirement accounts/pension funds is $40 trillion. Even just 1% of that ($400 billion) would be a massive inflow of funds, potentially driving the price of bitcoin significantly higher,” he wrote.
The report stated that MicroStrategy's buying frenzy has also stimulated the rise of bitcoin, which is expected to accelerate next year. The business software company has already purchased 386,700 bitcoins and plans to raise $42 billion over the next three years to buy more bitcoins.
“MicroStrategy's success has spawned many imitators; the largest of which is Metaplanet, listed in Japan, which currently holds over 1,000 bitcoins. Companies are also taking action, with the Germany-based Acurx Pharmaceuticals recently announcing a plan to purchase $1 million worth of bitcoin,” Kendrick said. “Although the inflows of these funds are small, they may increase over time.”
Since Trump was elected president of the United States, the price of bitcoin has increased by more than 40%. On Thursday, buoyed by the nomination of a crypto supporter to lead the SEC, bitcoin broke through the $100,000 barrier, peaking at $103,713. Later that day, bitcoin began to reverse its gains, significantly falling from its historical high, once dropping below $94,000 due to profit-taking by investors. According to Coindesk, bitcoin is currently trading around $97,000.
