The recent dip in Bitcoin’s price hasn’t shaken the confidence of key market analysts. Geoff Kendrick, head of digital assets research at Standard Chartered, maintains a bullish long-term outlook for Bitcoin despite short-term volatility. As digital assets face downward pressure alongside broader tech market corrections, Kendrick emphasizes that the underlying structural drivers—especially institutional adoption and evolving regulatory frameworks—remain strong.
Institutional Adoption Driving Long-Term Growth
Kendrick reiterated in a recent interview with BNN Bloomberg that the fundamental narrative behind Bitcoin is still highly favorable. He attributes this optimism to increasing institutional interest and what he describes as “long-term money” beginning to flow into the crypto ecosystem.
“The structural story remains very, very positive,” Kendrick said. “It’s institutional money coming in, it’s the overall changes that the administration will bring through the year—think regulation, think Congress passing bills, etc.—around a number of important issues that will drive further institutionalization of the asset class.”
One notable example of institutional demand is MicroStrategy, which has continued to accumulate Bitcoin aggressively. The company purchased an additional 10,000 BTC last week and is expected to expand its holdings further in 2025. This kind of strategic accumulation signals growing corporate confidence in Bitcoin as a long-term store of value.
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Price Outlook: Could Bitcoin Reach $200,000 by 2025?
With institutional inflows accelerating, Kendrick projects that Bitcoin could reach approximately $200,000 by the end of 2025. He believes this year may see even greater institutional adoption than 2024, providing a powerful catalyst for price appreciation.
This forecast isn’t based on speculation alone but on observable trends:
- Rising corporate treasury allocations to Bitcoin
- Development of crypto-related financial products
- Increasing clarity in regulatory policy discussions
While short-term price movements can be influenced by macroeconomic shifts or tech-sector sentiment, the long-term trajectory appears upward due to these foundational developments.
Short-Term Volatility Linked to Tech Market Trends
Despite the positive structural outlook, Bitcoin experienced a nearly 5% drop on Monday, falling to around $99,427.76**—briefly dipping below **$97,500 at one point. This decline coincided with a broader sell-off in technology stocks, triggered by the release of a new Chinese artificial intelligence model that rattled global markets.
Kendrick explained that digital assets like Bitcoin often move in tandem with tech equities, particularly those in the Nasdaq index.
“Bitcoin tends to be more highly correlated to tech stocks… rather than gold,” he noted. “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.”
This correlation means that during periods of risk aversion, Bitcoin can experience sharp corrections even when its fundamentals remain intact.
Regulatory Expectations: Stockpile vs. Strategic Reserve
One area where Kendrick expressed mild disappointment was the recent U.S. policy announcement regarding crypto assets. While there had been anticipation around the creation of a strategic Bitcoin reserve, the administration instead announced plans for a crypto stockpile—a concept tied more closely to seized or forfeited assets.
The U.S. government already holds roughly 200,000 Bitcoin from law enforcement seizures. A formal stockpile policy would manage these holdings over time but doesn’t represent the kind of proactive national strategy some investors hoped for.
“There had been some hope that we’d see something more than what we saw on Thursday,” Kendrick remarked.
Still, the formation of a new working group to advise on crypto policy—including evaluating the stockpile—is a step toward greater regulatory engagement. Over time, clearer rules could reduce uncertainty and encourage more institutional participation.
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Core Keywords Driving Market Sentiment
The key themes shaping current Bitcoin discourse include:
- Bitcoin price prediction
- Institutional adoption of cryptocurrency
- Crypto regulation
- Digital asset investment
- Blockchain technology
- Bitcoin as digital gold
- Market volatility
- Long-term crypto outlook
These keywords reflect both investor concerns and opportunities. They also align closely with search intent across financial and tech audiences exploring crypto’s role in modern portfolios.
FAQ: Addressing Key Investor Questions
Q: Why is Bitcoin falling if the fundamentals are strong?
A: Bitcoin often trades like a tech asset due to its high-risk profile and investor base. When tech stocks decline—especially due to AI-driven market shifts—Bitcoin can experience correlated sell-offs even if its long-term fundamentals remain unchanged.
Q: Is institutional interest in Bitcoin growing?
A: Yes. Companies like MicroStrategy continue to buy large quantities of Bitcoin, and financial institutions are increasingly offering crypto-linked products. This trend points to deeper integration of digital assets into traditional finance.
Q: What impact does U.S. regulation have on Bitcoin’s price?
A: Regulatory clarity can boost investor confidence. While recent moves toward a "crypto stockpile" fell short of expectations, ongoing policy discussions signal that crypto is becoming part of mainstream economic planning.
Q: Can Bitcoin really hit $200,000 by 2025?
A: While no prediction is guaranteed, sustained institutional inflows, limited supply (due to halving events), and growing adoption create conditions that could support such a price target under favorable macro conditions.
Q: How does blockchain technology influence Bitcoin’s value?
A: While Bitcoin is often discussed as digital gold, its underlying blockchain technology enables secure, decentralized transactions. This innovation continues to attract interest beyond just speculative investment.
Q: Should I buy Bitcoin during a dip?
A: For long-term investors focused on structural trends—like institutional adoption and technological advancement—a price correction may present an opportunity. However, all investments carry risk and should align with individual financial goals.
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Final Thoughts: Focus on the Big Picture
Short-term fluctuations in Bitcoin’s price should not overshadow the powerful macro forces at play. Institutional capital is flowing in, regulations are evolving, and technological understanding is deepening. These factors collectively support a resilient and optimistic long-term outlook.
As Geoff Kendrick emphasized, the core story of Bitcoin isn’t about daily price swings—it’s about transformation in how value is stored, transferred, and governed in the digital age. Investors who keep this perspective may find strength in volatility and opportunity in uncertainty.