Analysts:
The price of Bitcoin could continue to rise thanks to ETF inflows and institutional demand, as long as the market stays away from black swan events.
Analysts: institutional demand could push BTC beyond 200,000 dollars in 2025
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Demand from financial institutions could drive the price of Bitcoin
BTC
81,828 €
up to 200,000 dollars per coin by 2025, according to two research reports reviewed by Cointelegraph.
Analysts from Standard Chartered and Intellectia AI indicated that institutional demand for Bitcoin, coming from exchange-traded funds (ETFs) and traders seeking to hedge against macroeconomic risks, could cause the price of Bitcoin to more than double this year.
"Although the outlook is optimistic, it is also conditional. Any unforeseen event, from significant regulatory crackdowns to geopolitical events, could alter the trajectories," said Fei Chen, Chief Investment Strategist at Intellectia AI, to Cointelegraph.
Bullish sentiment
Reports come as Bitcoin surpassed 90,000 dollars on April 22 for the first time in six weeks, reflecting that traders are adopting Bitcoin and gold as potential hedges against impending trade wars and geopolitical volatility.
Price action followed the largest daily net inflows into spot Bitcoin ETFs in the U.S. since January.
The 11 U.S. spot BTC funds collectively attracted over 380 million dollars in net inflows on April 21, according to data from CoinGlass.
Intellectia AI noted that the drivers of institutional demand, including corporate buyers of Bitcoin and exchanges like Coinbase and Kraken, could continue to drive positive price action.
Corporate treasuries of Bitcoin already hold nearly 65 billion dollars in BTC, according to data from Bitcointreasuries.net.
Hedge or speculation?
Gold and BTC "seem to have structurally become more important components of investors' portfolios" as they increasingly seek to protect themselves against geopolitical risk and inflation, noted investment bank JP Morgan in a research note from January.
However, the correlation of Bitcoin with gold, historically a preferred refuge against macroeconomic uncertainty, has been low since U.S. President Donald Trump announced broad tariffs on imports on April 2, according to Binance Research on April 7.
In fact, Bitcoin has been more closely correlated with stocks, according to Binance.
Paradoxically, sustained inflows into ETFs could further diminish Bitcoin's status as a macroeconomic hedge, eroding one of its most attractive features for institutions, said Spencer Yang, a senior contributor to the crypto infrastructure project Fractal Bitcoin, to Cointelegraph.
"Despite growing institutional interest, the long-term resilience of Bitcoin will not be ensured solely by the appearance of balances: it depends on actual use," Yang stated.
"That means people actually transact, build, and experiment on the network, not just hold BTC as a speculative asset,"
