Standard Chartered Bank has significantly increased its year-end price prediction for Bitcoin (BTC), signaling a bullish outlook for the world’s leading cryptocurrency. In an emailed investment note released on Monday, the bank revised its forecast from $100,000 to a much higher $150,000 by the end of 2024.
But Standard Chartered’s optimism doesn’t stop there. Their analysts believe Bitcoin could reach a peak of $250,000 sometime in 2025 before settling around $200,000 for the remainder of the year. This bullish forecast hinges on the continued influence of exchange-traded funds (ETFs) on the cryptocurrency market.
Drawing Parallels with Gold ETFs
The bank’s analysis draws a comparison between the historical price movement of gold following the introduction of gold ETFs in the US and the potential impact of similar instruments on Bitcoin. The reasoning is that the launch of spot Bitcoin ETFs in the US back in January could trigger a similar surge in investment and price appreciation.
“We think the gold analogy – in terms of both ETF impact and the optimal portfolio mix – remains a good starting point for estimating the ‘correct’ BTC price level medium-term,” the note stated.
Standard Chartered goes a step further, suggesting that if mid-point estimates of $75 billion flow into Bitcoin ETFs or if traditional investment managers begin allocating to Bitcoin, a temporary price overshoot to $250,000 becomes a distinct possibility in 2025.
Also Read: Bitcoin ETFs: A Golden Dawn or a Modest Glow? Comparing Crypto to Gold’s Historic Move
Ethereum (ETH) Poised for Growth Too
The bank’s bullish sentiment extends beyond Bitcoin. Standard Chartered predicts the US Securities and Exchange Commission (SEC) may approve an Ether (ETH) ETF by May 23rd of this year. This, they believe, could lead to a significant influx of capital, with estimates suggesting up to $45 billion entering the ETH market within the first twelve months. Such an influx could propel Ethereum’s price to around $8,000 by the end of 2024, more than double its current price of $3,570.
Looking further ahead, Standard Chartered expects the price ratio between ETH and BTC to return to historical levels observed in 2021-2022, reaching around 7%. Based on their $200,000 year-end prediction for Bitcoin in 2025, this translates to a potential price target of $14,000 for Ethereum.
Standard Chartered’s revised forecasts paint a rosy picture for the cryptocurrency market in the coming years. However, it’s important to remember that these are still predictions, and the cryptocurrency market remains volatile.
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