Swiss-based Sygnum Bank has just released a report detailing what it forecasts to be “demand shocks” and big price increases for Bitcoin in 2025.
Report predicts price increases based on institutional buying
Sygnum Bank is a crypto-focussed asset manager based in Switzerland. It has recently released a report titled “Crypto Market Outlook 2025”, in which it lays out its forecast that Bitcoin is likely to attract a lot more capital from institutional investors, such as sovereign wealth funds, endowments, and pension funds, which is likely to act as the major driver for significant price increases in 2025.
Sygnum cites a “multiplier effect” which states that for every $1 billion that goes into the U.S. Spot Bitcoin ETFs, the price has historically risen from 3% to 6%. This multiplier effect is expected by Sygnum to intensify as more institutional investors enter this market.
Scarce supply and long-term holders promote price surges
The report discusses the unique attributes of Bitcoin, with its incredibly scarce supply of only 21 million BTC to ever be mined, together with the long term holders, acting to continually buoy the price upwards. With the supply being quite inelastic, due to these long term holders, demand surges could lead to considerable appreciation in price.
US new crypto-friendly climate
The Sygnum Bank report also refers to the new crypto-friendly environment in the US, stating that if pro-crypto policies continue, this would likely help to accelerate the inflow of institutional investment into the U.S. Spot Bitcoin ETFs.
In direct relation to this, total inflows to these funds on Thursday amounted to 5.90K BTC, equivalent to $596.60 million. For the week so far, that is a grand total of $1.742 billion.
$BTC breakout but diminishing volume
Source: TradingView
The 4-hour time frame for $BTC shows that the price is still respecting the uptrend. A breakout of the triangle occurred, and the price has gone back to test the top of the triangle. However, volume is declining and so a surge from here is not likely unless this changes. Horizontal support (orange line) is gathering strength at $99,000.
Monthly RSI shows still some way to go to the top
Source: TradingView
The macro chart of the monthly time frame is shown with the Relative Strength Index (RSI). This indicates oversold and overbought conditions. Here it can be seen that the indicator line at the bottom of the chart still has some way to go before reaching the descending trendline. The peaks on the RSI accurately show the tops of the previous bull markets, so it might be expected that this will be the case this time.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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