Bitcoin could experience tumultuous price actionbut it’s fundamentals remain solid. Despite the risk of falling prices in the short term, Standard Chartered, the global banking giant, has some bullish predictions for BTC. According to the bank’s emailed investment note, the world’s leading cryptocurrency could skyrocket to $150,000 by the end of 2024. Additionally, their long-term prediction is that Bitcoin could peak at $250,000 in 2025.
Standard Chartered predicts massive rise in Bitcoin prices
The first half of 2024 is almost over and The current price development of Bitcoin derailed more than many were waiting. However, analysts at Standard Chartered remain optimistic and have revised their price target to $100,000 by the end of 2024. Now, the bank estimates that the price of Bitcoin can still increase by more than 130% in the second half of 2024 and reach a high of $150,000. by the end of the year.
Standard Chartered’s analysis draws on the success of gold exchange-traded funds (ETFs) in the United States and the surge in the price of gold in the months following their introduction.
“We believe the gold analogy – in terms of both ETF impact and optimal portfolio composition – remains a good starting point for estimating the ‘correct’ price level of BTC in the medium term” , noted the bank.
Many analysts and industry players have always compared BTC to gold. Thanks to its provable scarcity, limited supply of 21 million BTC, and status as a non-sovereign store of value, Bitcoin is increasingly considered “digital gold” by investors. Just as physical gold has provided a hedge against inflation and economic turmoil for centuries, Bitcoin is credited with playing a similar role in the digital age.
Furthermore, Standard Chartered estimates that the price of BTC will continue to rise and reach a high of $250,000 in 2025 before settling around $200,000. This will only become a reality thanks to the success of Spot Bitcoin ETFs.
“If ETF inflows reach our median estimate of $75 billion and/or reserve managers buy BTC, we see a good chance of surpassing the $250,000 level at some point in 2025,” it says. Note.
There is no denying that Spot Bitcoin ETFs have done wonders for the price of BTC since their launch in January. Their long-awaited launch saw them break several ETF records as institutions and mainstream investors rushed to get in on the action. This resulted in a corresponding increase in the price of BTC, which led to the creation of a new all-time high.
However, interest in Spot Bitcoin ETFs has been steadily declining and they recorded six consecutive days of outflows last week. Some will argue that the price of BTC has become too dependent on the activity of Spot Bitcoin ETFs. At the time of writing, the 11 ETFs collectively hold $55.55 billion worth of Bitcoin, representing 4.39% of the total market cap.
Featured image created with Dall.E, chart from Tradingview.com
