Bitcoin may be experiencing turbulent price actionbut it is the fundamentals remain sturdy. Despite the near-term downside risk, global banking giant Standard Chartered has it bullish predictions for BTC. According to an emailed investment note from the bank, the world’s leading cryptocurrency could skyrocket to a staggering $150,000 by the end of 2024. Additionally, their long-term forecast predicts that Bitcoin could peak at $250,000 in 2025.
Standard Chartered predicts a huge enhance in Bitcoin prices
The first half of 2024 is almost over Bitcoin’s current price action derailed over many expected it. However, Standard Chartered analysts remain sanguine and have revised their price target to $100,000 by the end of 2024. Currently, the bank believes that Bitcoin’s price could still enhance by over 130% in the second half of 2024 and reach a peak of $150,000 under end of the year.
Standard Chartered’s analysis is based on the success of ETFs in the US and the rise in the gold price in the months following their introduction.
“We believe that the gold analogy – both in terms of ETF impact and optimal portfolio composition – remains a good starting point for estimating the “right” BTC price level in the medium term,” the bank noted.
Many analysts and industry players have always done this compared BTC to gold. With provable scarcity, a narrow supply of 21 million BTC, and its status as a non-state store of value, Bitcoin is increasingly viewed by investors as “digital gold.” Just as physical gold has been a hedge against inflation and economic turmoil for centuries, so is Bitcoin playing a similar role in the digital age.
Additionally, Standard Chartered believes that the BTC price will continue to rise and will reach a high of $250,000 in 2025 before reaching around $200,000. This will only become a reality based on the success of Spot Bitcoin ETFs.
“If ETF inflows reach our average estimate of $75 billion and/or if reserve managers purchase BTC, we see a strong opportunity to exceed $250,000 at some stage in 2025,” the note reads.
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 various ETF records as institutions and conventional investors rushed to get in on the action. This led to a corresponding enhance in the price of BTC, creating a fresh all-time high.
However, interest in Spot Bitcoin ETFs has been steadily dwindling, and last week they experienced six straight days of outflows. Some argue that the price of BTC has become too dependent on the activity of Spot Bitcoin ETFs. As of this writing, 11 ETFs hold a total of $55.55 billion worth of Bitcoin, representing 4.39% of the total market capitalization.
Featured image created with Dall.E, chart from Tradingview.com
