Standard Chartered urges clients to buy dips in Bitcoin

Published 22/01/2025, 14:46
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Investing.com -- Analysts at Standard Chartered (OTC:SCBFF) are urging clients to capitalize on price dips in Bitcoin and Ethereum, projecting medium-term gains in the cryptocurrencies despite market uncertainty.

In a Wednesday note, the bank highlighted the absence of digital asset-related policies in President Trump’s initial executive orders as a key factor behind recent price corrections, emphasizing that “no news is bad news” for the sector. Without immediate supportive policy announcements, prices may face additional short-term pressures.

But despite these near-term headwinds, Standard Chartered maintains a bullish outlook for digital assets. The bank forecasts Bitcoin reaching $200,000 and Ethereum climbing to $10,000 by the end of 2025, driven by expected regulatory clarity and robust institutional inflows.

“We expect institutional flows into BTC in 2025 to exceed 2024 levels, with fresh capital likely to come from long-only funds classified as ‘pension funds’,” said Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered Bank.

“So far, these funds account for only 1% of BTC ETF ownership,” he added.

Kendrick identified two key themes that could impact crypto prices under Trump’s second term.

These include executive orders specifically related to the digital assets space, such as creating a Bitcoin reserve or reducing regulatory burdens, and potential US tariffs, which could negatively impact inflation expectations and weigh on digital asset prices.

“If both (or neither) of these are forthcoming, the implications for digital asset prices are mixed,” the analyst added. “Also, if time passes with no news on digital assets, markets are likely to price in a lower probability of such good news materialising. This would be negative for digital asset prices.”

Kendrick also touched upon the growing differentiation among digital assets, with specific coins poised to benefit from new developments.

For instance, Litecoin is expected to gain from potential ETF launches, while Uniswap could see upside from regulatory changes enabling revenue monetization.

Since the US election, the performance of various cryptocurrencies has shown significant divergence. Ripple and Stellar have been standout performers, bolstered by positive outcomes in Ripple’s legal battles and increasing institutional use of RippleNet’s payment system.

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