Bitcoin to be a ‘Core Allocation for Asset Managers’ in 2025: says Maple Finance

Powell forecasts the world’s largest cryptocurrency by market cap to double from current levels on the back of institutional interest in 2025. 

Source: Brave New Coin Bitcoin Liquid Index (BLX)

The ETFs the US Securities & Exchange Commission approved this year now own more Bitcoin than its pseudonymous founder, Satoshi Nakamoto. But the best is yet to come, according to Sid Powell. 

In fact, he sees BTC becoming a core allocation for institutional asset managers next year.  

“Historically, when we saw Gold ETFs come in, the inflow increased dramatically in subsequent years. I think you can expect to see the same with Bitcoin ETFs,” he said in a recent interview. 

Sid Powell expects Bitcoin to print a high of between $180K and $200K in 2025. 

Sid Powell is a crypto market veteran who cofounded Maple Finance – a DeFi platform in 2021. 

On “Squawk Box Europe”, Powell agreed that it’s unlikely to be a smooth ride to $200K and the possibility of corrections remains on the table. 

But with institutional capital serving as a buffer, none of them will be of the order of 70% to 80% as we’ve seen in the past, he added. 

“One thing to pay attention to is the amount of leverage in the sector. We’re not seeing the same leverage we did in 2022. I think that’ll dampen some of the shocks and the downside volatility.”

Powell’s remarks arrive at a time when the crypto industry is grappling with the latest broadcast from the Federal Open Market Committee that signals only two rate cuts in 2025. The US central bank had previously hinted at four. 

Source: TradingView

That’s significant as lower interest rates typically make bonds and saving accounts less attractive and help drive capital into the risk-on assets like cryptocurrencies. 

But Powell is convinced that another two rate cuts next year, coupled with pro-crypto policies under the Trump administration, will prove sufficient in adding fuel to the Bitcoin rally next year. 

The Maple Finance boss expects other large-cap tokens like Solana and XRP to have their own exchange-traded funds under the new Securities & Exchange Commission.

Such developments, he argued, could serve as meaningful tailwinds for the entire industry, including Bitcoin, as they’ll signal a maturing market that may help boost adoption and acceptance.

Sid Powell is keeping his hopes up for a Strategic Bitcoin Reserve as Donald Trump returns to the White House in January. It may prove to be the single, most important event that unlocks massive upside in the price of Bitcoin, he added. 

Note that the President-elect has already created a first-ever crypto “czar” role in White House to make sure his administration has the required expertise execute his broader strategy of making America a crypto superpower.  

Sid Powell is confident that at least some of the focus will shift from meme coins to BTC over time as investors “start paying more attention to things that are actually making a difference technologically.”

What’s also worth mentioning is that corporate America is starting to change its view on Bitcoin as well. In a recent survey of CFOs conducted by CNBC, only 11% dubbed Bitcoin a fraud – down significantly from 19% in 2021 and 28% in 2017. 

As BTC continues to integrate into the financial sector and gains broader acceptance from global investors, Powell’s forecast of it hitting $200K may not look as exaggerated as it does today. 

Source: Treasuries.bitbo.io

Meta Description: Institutional adoption of Bitcoin is on the rise

Alt Text: Bitcoin to extend its ongoing rally in 2025

All in all, a growing number of institutions embracing Bitcoin as a legitimate asset class and expectations of a lenient regulatory backdrop signals favorable evolution of the crypto landscape that lays the groundwork for continued upside in the price of BTC.  

That’s why MicroStrategy’s Michael Saylor continues to buy Bitcoin on every dip. Perhaps there is a lesson in there?