Cryptocurrency market: Bitcoin’s structural story remains ’very positive’ amid declines, says head of digital asset research
One crypto expert expects the price of Bitcoin to roughly double by the end of the year due to more institutional capital moving to the sector despite price declines on Monday.
Geoff Kendrick, the head of digital assets research at Standard Chartered, said in an interview with BNN Bloomberg Monday that his outlook for Bitcoin remains positive, adding that he expects more “long-term money” to enter the crypto industry throughout the year which will push the price of Bitcoin higher. Additionally, Kendrick added that Micro Strategy continues to be a major buyer, purchasing an additional 10,000 Bitcoin last week, and is expected to purchase even more in 2025.
“The structural story remains very, very positive, it’s institutional money coming in, it’s the overall changes that the (Donald) Trump administration will bring through the year. So, think regulation, think Congress passing bills, etc., around a number of important issues that will drive that further institutionalization of the asset class,” Kendrick said.
“And I think on the back of that we should get to about US$200,000 for Bitcoin by the end of 2025, because you’ll probably see more institutional inflow this year than we saw even in 2024.”
Despite the overall positive outlook for Bitcoin, Kendrick said he was “a little disappointed” regarding the actions of the Trump administration last week. He noted that the market was looking forward to news concerning a strategic Bitcoin reserve in the U.S., but instead a stockpile was announced.
According to Bloomberg News, the U.S. President ordered a new working group to be created to advise his administration on crypto policy, which includes evaluating the creation of a crypto stockpile.
“Stockpile talks more to things like what the federal authorities in the U.S. keep over time. So, the U.S. already owns about 200,000 Bitcoins on the back of seized assets. There had been some hope that we’d see something more than what we saw on Thursday,” he said.
Kendrick’s comments came after the price of Bitcoin, and other crypto currencies, moved lower amid declines in technology stocks, Bloomberg News reported Monday. The price of Bitcoin was down five per cent at around 99,427.76 early afternoon Monday.
“So, I think the digital asset market was set up for a bit of a risk-off move, and it’s this Nvidia thing which has pushed it lower, so you see that liquidation story. It’s probably come far enough now for me, so I thought we needed to go back below $100 (thousand) at some point, and we got to $97.5 (thousand) this morning,” he said.
Bitcoin’s move lower on Monday occurred alongside declines in technology stocks, according to Bloomberg News, amid the emergence of a new Chinese artificial intelligence (AI) model which spurred a global selloff in assets with higher risk profiles.
“Bitcoin tends to be more highly correlated to tech stocks, so just use the Nasdaq as your example there, rather than gold, although the likes of myself often talk about Bitcoin as sort of digital gold, really it’s the technology behind it, the blockchain technology which is extremely interesting,” Kendrick said.
This article was first reported by The BNN Bloomberg
