Tuesday, 23 July 2024

Crypto News

Standard Chartered raises 2024’s BTC forecast to $150K, projects $250K in 2025

Standard Chartered Zodia integrates Ripple-owned Metaco’s crypto storage services

  • Standard Chartered upgrades BTC forecast to $150K year-end.
  • The bank’s analysis is based on ETF inflows, historical gold performance, and institutional interest.
  • The bank believes the potential ETH ETF approval could drive ETH to $8K by 2024.

Standard Chartered Bank has upgraded its year-end forecast for Bitcoin’s price to $150,000, representing a 50% increase from its previous estimate of $100,000.

The bank anticipates significant bullish momentum for BTC, attributing the revision to strong inflows into spot bitcoin exchange-traded funds (ETFs) in the United States. These inflows are outpacing the growth of bitcoin derivatives’ open interest, suggesting sustainable positioning and long-term investment interest, particularly from pension-type funds.

The revised forecast also includes a projection for Bitcoin to reach a high of $250,000 during the 2025 cycle before stabilizing around $200,000.

Standard Chartered bases its analysis on the historical performance of gold after the introduction of gold ETFs in the U.S., drawing parallels between ETF inflows and BTC price movements.

Additionally, the bank highlights the potential for an overshoot in BTC’s price if ETF inflows reach an estimated $75 billion or if reserve managers begin acquiring BTC.

Ethereum ETF approval prospects

In addition to Bitcoin, Standard Chartered Bank also speculates on the impact of a potential Ethereum (ETH) exchange-traded fund (ETF) approval by the Securities and Exchange Commission (SEC) on May 23.

The bank suggests that such approval could lead to substantial inflows, potentially up to $45 billion within the first 12 months. This influx of capital could drive ETH’s price to approximately $8,000 by the end of 2024, assuming approval of a spot ETF.

Looking ahead to 2025, Standard Chartered envisions a scenario where the ETH-to-BTC price ratio returns to around 7%, indicating a potential ETH price of $14,000 given the bank’s estimated BTC price of $200,000 by the end of that year.

The bank’s analysis underscores the significance of regulatory developments, ETF approvals, and institutional investment trends in shaping the future trajectory of both Bitcoin and Ethereum.

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