According to Standard Chartered, Bitcoin could jump to $200,000 by 2025, driven by increasing institutional adoption and major ETF inflows. Geoff Kendrick, the bank's head of digital asset research, has consistently championed Bitcoin's long-term potential and argues that the cryptocurrency's driving forces have undergone a fundamental shift. His strong analysis illustrates a major transformation in Bitcoin’s market dynamics, laying the groundwork for explosive growth.

Kendrick’s forecast depends entirely on the cumulative effect of ETF inflows and corporate treasury investments. These are projected to be responsible for about 245,000 BTC by Q2 2025. This substantial influx of Bitcoin into institutional portfolios is anticipated to drive prices upward, solidifying Bitcoin's position in the financial landscape.

Kendrick breaks down a few of the most important figures driving this bullish outlook. MicroStrategy has made a habit of stacking Bitcoin for its treasury strategy. This significant step reflects the growing faith that companies are placing in digital assets. Bitcoin mining projects are doing some creative things with that unused energy. This further underscores the cryptocurrency’s evolving role in advancing clean energy breakthroughs. Lastly, the recent moves by Scandinavian investment houses rebalancing their reserves with digital assets highlight the increasing acceptance of Bitcoin adoption by more advanced investors.

That predicted increase will occur over the course of 2025. ETH is expected to pump beyond certain thresholds for Q3 and Q4. Whether this upward trajectory is the beginning of something exciting and new for Bitcoin is yet to be seen. By the close of 2025, it could go from a digital curiosity to a monetary mainstream asset. And now institutional treasuries across the globe are discovering the unique properties of Bitcoin as a store of value. Yet, investors are not just passively waiting for it to come to them.

Kendrick’s takeaway is that Bitcoin has recently been acting counter to typical behavior consistent with its previous markets defined by halving cycles. Historically, these cycles have lasted just 18 months, with price booms followed by corrections in the process. That hasn’t been the case with the recent halving back in April 2024. New, stronger demand drivers are taking hold, changing the market dynamics. Since their inception in January, U.S.-based spot Bitcoin ETFs have experienced massive inflows, and corporate treasury accumulation is increasing.

Now, institutional capital is flooding into the Bitcoin market through these ETFs. This inflow is creating a tremendous amount of liquidity and stability, mitigating the extreme volatility often associated with halving cycles. This new wave of investment is indicative of a much greater conviction that Bitcoin is here to stay as a long-term store of value. Doing so further strengthens its role in the broader financial ecosystem.

Not only is Standard Chartered bullish through 2025, but the bank made a long-term bullish call for Bitcoin to hit $500,000 by 2028. This bold target is a clear testament to the bank’s trust in Bitcoin’s long-term expansion and that it is a game-changer in the financial sector.