Bitcoin and Ethereum will soar with institutional impact: But bad news for altcoins - Coin Bulletin

It is expected that institutional investments will raise the prices of Bitcoin and Ethereum, while the altcoin season is predicted to be subdued by this effect.

Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, stated that institutional investors may limit the impact of the upcoming altcoin season as they drive up the prices of Bitcoin and Ethereum.

Kendrick, in an email statement, used the expressions "The weight of corporate entries into ETFs will support the performance of Bitcoin and Ethereum. We predict that their prices will reach levels of $200,000 and $10,000, respectively by the end of 2025".

Kendrick reported that they expect institutional investments in Bitcoin to be higher in 2025 compared to 2024 and that this new capital will largely come from long-term funds classified as "retirement funds".

However, he said that this capital flow could decrease interest in the altcoin season and said, 'This situation could lead to a lackluster altcoin season. Institutional capital flows will drive Bitcoin and Ethereum and partially balance the rotation to altcoins.'

Impact of Trump Memecoin on Altcoin Season

QCP Capital analysts suggested that the Trump (TRUMP) memecoin, released over the weekend, could be a catalyst for the anticipated altcoin season. Analysts used the expression "TRUMP's global impact and rapid rise indicate a paradigm shift in capital formation in the crypto markets. This could be a development that triggers the expected altcoin season."

The Impact of Bitcoin ETFs on the Options Market

The new fully collateralized spot Bitcoin ETFs launched by Calamos on Wednesday also attracted attention to the crypto market with another institutional impact. These ETFs use option-based strategies that limit downside risk while also limiting upside potential.

Cryptocurrency derivatives trader Gordon Grant evaluated the impact of these ETFs on the Bitcoin options market. Grant observes that Calamos' new ETFs have created an interesting model in open options positions.

This situation may create some pressure in call options, but it does not generally mean a downward trend."

Bitcoin is Growing as an Investment Tool

Calamos ETF President Matt Kaufman noted that acceptance of Bitcoin as an investable asset is increasing, but volatility concerns remain. "Our new Bitcoin ETF solutions hedge against volatility by offering investors their preferred level of risk management for this asset," Kaufman said.