PK Press Club — Standard Chartered (OTC:) analysts are urging clients to capitalize on price declines by forecasting medium-term gains for cryptocurrencies despite market uncertainty.
In a note released Wednesday, the bank highlighted the absence of digital asset-related policies in President Trump’s early executive orders as a key factor in recent price corrections, emphasizing that “no news is bad news” for the sector . Without immediate supportive policy announcements, prices could face additional pressures in the near term.
But despite these near-term headwinds, Standard Chartered maintains an optimistic outlook for digital assets. The bank predicts that Bitcoin will reach $200,000 and Ethereum will reach $10,000 by the end of 2025, thanks to expected regulatory clarity and robust institutional flows.
“We expect institutional flows into BTC in 2025 to exceed 2024 levels, with new capital likely to come from long-term funds classified as ‘pension funds,’” said Geoff Kendrick, global head of BTC. digital assets research at Standard Chartered Bank.
“So far, these funds represent only 1% of the ownership of the BTC ETF,” he added.
Kendrick identified two key themes that could impact cryptocurrency prices under Trump’s second term.
These include executive orders specifically related to the area of digital assets, such as the creation of a Bitcoin reserve or the reduction of regulatory burdens, as well as possible US tariffs, which could have a negative impact on expectations of inflation and weigh on the prices of digital assets.
“If both (or neither) of these occur, the implications for digital asset prices will be mixed,” the analyst added. “Moreover, if time passes without any news on digital assets, markets are likely to assess a lower probability of such good news materializing. This would be negative for digital asset prices.
Kendrick also touched on the growing differentiation between digital assets, with specific coins poised to benefit from new developments.
For example, it is expected to benefit from potential ETF launches, while also benefiting from regulatory changes enabling revenue monetization.
Since the US elections, the performance of different cryptocurrencies has shown significant divergences. and have been notable players, buoyed by the positive results of Ripple’s legal battles and the growing institutional use of RippleNet’s payment system.