According to Standard Chartered’s report, the digital asset price is expected to face continuous short -term volatility due to lack of policy clarity from the new US administration, but the medium -term opportunity is big. It can make a profit.
Jeffrey Kendrick, a global head for banking digital asset research, pointed out in a report that the market has been negatively recognized that there is no digital asset on the first day of President Donald Trump.
This can extend prices correction of major coins such as bitcoin (BTC) and Ethereum (ETH), combined with continuous silence. However, he also emphasized the importance of institutional inflow, which is expected to continue to increase in the medium term.
Kendrick wrote:
“We recommend buying dips in anticipation of medium -term movement.”
The report reaffirmed that Bitcoin was expected to reach $ 200,000 by the end of 2025 and $ 10,000.
Kendrick also predicted that the pension fund would be an important holder of bitcoin and other cipher ETFs. He pointed out that only 1 % have been exposed to encryption ETFs so far.
Market stage
Kendrick outlines three different phases of digital assets in 2025. The first phase, called the “WHEN HOPE DIES,” reflects the recent price decline due to its declining market optimism. Prices may fall 10 % to 20 % due to the lack of speculative fatigue and supported policy development.
The second phase, “Purchase DIP,” indicates the possibility of recovery as we start implementing a policy that is gentle on encryption.
Kendrick wrote:
“Given the relative size of the asset class, it is expected to take several weeks or months.”
He further explained the timeline by comparing the digital asset market with the size of a single technical giant like Apple.
The final stage “Altcoin Alpha” is expected to start soon after recovery. Kendrick predicts that specific Altcoins such as Litecoin (LTC) and Uniswap native token UNI can benefit from new ETF approval and regulation changes, and provides investors an additional return. Masu.
Institutional interest continues to be strong
Despite the recent set, Kendrick is optimistic about the institutional adoption. As of September 2024, only 1 % of the ownership of Bitcoin ETFs is as of September 2024, leaving room for growth.
According to Kendrick:
“Fresh capital is more likely to flow into these assets and supports both Bitcoin and Ethereum’s long -term performance.”
Standard Chartered’s analysis emphasizes a widespread differentiated market because of the decrease in regulation compliance burden, so that sector like Defi has gained traction. In particular, UNISWAP will benefit from these changes, improving the profit of the protocol.
While short -term disadvantages continued, Kendrick concluded that the current environment offers strategic entry points to long -term investors.
He added:
“There is no bad news so far, but constructive actions from policy planners promote robust recovery.”
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