Bitcoin ($BTC) “demand shocks” and big price increases expected in 2025

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As a seasoned crypto investor with a Swiss bank account and a knack for spotting trends, I find Sygnum Bank’s report intriguing. Having witnessed the crypto market’s volatility firsthand, I’ve learned to take forecasts with a grain of salt, but this one seems grounded in solid reasoning.

According to a recent report from Sygnum Bank, headquartered in Switzerland, they predict significant surges in demand and substantial price hikes for Bitcoin by the year 2025.

Report predicts price increases based on institutional buying

Swiss-based Sygnum Bank, a specialist in crypto management, has unveiled its report titled “Crypto Market Outlook 2025.” In this document, they predict that institutional investors like sovereign wealth funds, endowments, and pension funds will pour substantial capital into Bitcoin. This investment influx is anticipated to be the primary factor leading to considerable price surges in the year 2025.

According to Sygnum, a “multiplier impact” exists, meaning that when $1 billion is invested in U.S. Spot Bitcoin ETFs, the price can potentially increase between 3% and 6%. This multiplier effect, they predict, could become stronger as more institutional investors join this market.

Scarce supply and long-term holders promote price surges

The study delves into the distinctive characteristics of Bitcoin, notably its extremely limited production, capped at 21 million coins that can ever be mined, and the persistent impact of long-term investors who consistently drive the price higher. Since the supply is relatively inflexible due to these long-term investors, sudden increases in demand could result in significant price growth.

US new crypto-friendly climate

According to the Sygnum Bank report, the growing crypto-friendly atmosphere in the United States is highlighted as a potential factor that could boost the rate at which institutional investments flow towards U.S. Spot Bitcoin ETFs, should pro-crypto policies persist.

Speaking directly about it, the Bitcoin inflows into those particular funds on Thursday summed up to approximately 5,900 Bitcoins, which equates to an impressive $596.6 million. So far this week, the accumulated total is a staggering $1.742 billion.

$BTC breakout but diminishing volume

For Bitcoin ($BTC), the last 4 hours have maintained its upward trend despite a breakout of a triangle pattern, which has caused the price to retest the triangle’s top. However, trading volume is decreasing, suggesting that a significant increase in price might not occur unless this changes. Meanwhile, the support level around $99,000 (indicated by the orange line) is growing stronger.

Monthly RSI shows still some way to go to the top

On the monthly graph displayed, you’ll find the Relative Strength Index (RSI) as a guiding tool. This index helps identify oversold and overbought conditions within the market. Currently, the indicator line at the chart’s base has yet to reach the falling trendline, suggesting there might be more movement before it does. Notably, past peak markets are mirrored by peaks on the RSI. So, it could be anticipated that a similar pattern may occur here as well.

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2024-12-13 14:15