Sygnum Bank, a prominent player in the crypto asset management sector, has published a compelling report on December 12 that details a potential “demand shock” for Bitcoin (BTC) by 2025. The report suggests that increased institutional capital inflows could significantly elevate BTC prices. Citing their “2025 Crypto Market Outlook,” Sygnum highlights a multiplier effect from institutional flows, noting that each $1 billion influx into exchange-traded funds (ETFs) tied to spot trading can push Bitcoin’s price up by approximately 3-6%. As institutional investors, including sovereign wealth and pension funds, ramp up their Bitcoin investments, this upward momentum is expected to strengthen in the coming years.
Additionally, Sygnum points out that the impact may extend to other cryptocurrencies, contingent upon favorable legislation in the United States. Proposed regulatory reforms such as the 21st Century Financial Innovation and Technology Act (FIT21) and the Payment Stablecoin Act are pivotal to fostering a supportive environment for crypto assets. These developments could further influence the crypto market’s landscape and institutional participation.