Pakinomist — Analysts at Standard Chartered (OTC:) are urging clients to take advantage of price declines in and forecast medium-term gains in cryptocurrencies despite market uncertainty.
In a note on Wednesday, the bank highlighted the absence of digital asset-related policies in President Trump’s initial executive orders as a key factor behind the recent price corrections, stressing that “no news is bad news” for the sector. Without immediate supportive policy announcements, prices may face further near-term pressure.
But despite these near-term headwinds, Standard Chartered maintains a positive outlook for digital assets. The bank predicts Bitcoin to reach $200,000 and Ethereum to rise 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 new 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 only account for 1% of the BTC ETF’s ownership,” he added.
Kendrick identified two key themes that could affect crypto prices during Trump’s second term.
These include orders specifically related to the digital asset 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 come, the implications for digital asset prices are mixed,” the analyst added. “If time goes by without news about digital assets, markets are likely to price in a lower probability of such good news materializing. This would be negative for digital asset prices.”
Kendrick also touched on the growing differentiation among digital assets, with specific coins poised to benefit from new developments.
For example, it is expected to gain from potential ETF launches, while it could see upside from regulatory changes that enable monetization.
Since the US election, the performance of various cryptocurrencies has shown significant divergence. and have been exceptional performers, boosted by positive results in Ripple’s legal battles and increasing institutional use of RippleNet’s payment system.