The post Standard Chartered believes rising institutional inflows will fuel crypto market recovery amid policy uncertainty appeared on BitcoinEthereumNews.com.

Digital asset prices are expected to face continued short-term volatility due to a lack of policy clarity from the new US administration, but medium-term opportunities could deliver significant gains, according to a report by Standard Chartered. Geoffrey Kendrick, the bank’s global head of digital assets research, noted in the report that the absence of any mention of digital assets during President Donald Trump’s first day in office was perceived negatively by the market. This, coupled with continued silence, could extend price corrections for major coins like Bitcoin (BTC) and Ethereum (ETH). However, he also emphasized the importance of institutional inflows, which are expected to continue increasing in the medium term. Kendrick wrote: “We recommend buying the dips in anticipation of medium-term moves higher.” The report reaffirmed that Bitcoin is projected to hit $200,000 and Ethereum $10,000 by the end of 2025 as institutional investors increase their allocations to crypto-related exchange-traded funds (ETFs). Kendrick further projected that pension funds would become significant holders of Bitcoin and other crypto ETFs which is likely to drive prices higher due to their “long-only” nature. He noted that so far, only 1% had exposure to crypto ETFs. Market phases Kendrick outlined three distinct phases for digital assets in 2025. The first, dubbed “when hope dies,” reflects the recent price declines as market optimism wanes. Prices could drop further by 10% to 20%, driven by speculative fatigue and a lack of supportive policy developments. The second phase, “buy the dip,” signals the potential for recovery as the administration begins implementing crypto-friendly policies. Kendrick wrote: “We anticipate this may take several weeks or months, given the relative size of the asset class.” He further explained the timeline by comparing the digital asset market to the scale of a single tech giant like Apple. The final phase —…

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Filed under: News - @ January 22, 2025 8:23 pm