TechFlow news, December 12 — According to Cointelegraph, Swiss crypto-focused asset manager Sygnum Bank reported on December 12 that surging institutional inflows could trigger a "demand shock" for Bitcoin (BTC) in 2025, potentially driving a sharp price surge.
In its "Crypto Market Outlook 2025" report, Sygnum stated that institutional capital flows have already created a "multiplier effect" on BTC’s spot price—every $1 billion in net inflows into spot exchange-traded funds (ETFs) drives price increases of approximately 3–6%. This dynamic is expected to accelerate in 2025 as major institutional investors, including sovereign wealth funds, endowments, and pension funds, increase their Bitcoin allocations.
Sygnum added that this trend would only extend to alternative cryptocurrencies if the U.S. passes legislation supportive of crypto adoption. Key bills highlighted include the proposed Financial Innovation and Technology for the 21st Century Act (FIT21) and the Stablecoin Payments Act.
