Standard Chartered Predicts Growth Potential For Digital Assets Amid Policy Uncertainty

According to PANews, a report by Standard Chartered Bank highlights potential short-term volatility in digital asset prices due to unclear policies from the new U.S. administration. Despite this, the report remains optimistic about the medium-term growth potential of digital assets. The market reacted negatively as President Trump did not address digital assets on his first day in office, and the ongoing policy silence may lead to continued price adjustments for major cryptocurrencies like Bitcoin and Ethereum. However, the inflow of institutional funds remains a crucial support for medium-term growth. Geoffrey Kendrick, Global Head of Digital Asset Research at Standard Chartered, advises investors to consider buying during price dips to capitalize on potential medium-term price increases. He forecasts that Bitcoin could surpass $200,000 and Ethereum might reach $10,000 by the end of 2025. Additionally, institutional investors, such as pension funds, are expected to become significant holders of cryptocurrency ETFs, driving prices upward. Kendrick also analyzed three phases of the digital asset market: the disillusionment phase, the buy-the-dip phase, and the altcoin alpha phase. He anticipates that as governments begin to implement crypto-friendly policies, the market will gradually recover, with specific altcoins benefiting from new ETF approvals and regulatory changes. Despite recent market setbacks, Kendrick remains optimistic about the prospects of institutional adoption of digital assets. He believes that new capital will continue to flow in, supporting the long-term performance of Bitcoin and Ethereum. Furthermore, areas like decentralized finance are expected to experience growth opportunities as regulatory compliance burdens ease.