Standard Chartered Forecasts Bitcoin Price to Hit Nearly $200,000 with ETF Approvals by 2025
Summary:
Standard Chartered predicts Bitcoin could reach nearly $200,000 by the end of 2025, given the success and approval of US Bitcoin exchange-traded funds. This is based on the anticipation that US-listed spot Bitcoin ETFs would hold between 437,000 and 1.32 million Bitcoin by 2024's end. The forecast aligns with the bank's previous prediction of Bitcoin hitting $100,000 by 2024's end. Industry experts suggest the impact of Bitcoin’s strengthened network fundamentals also needs consideration while determining Bitcoin’s future price.
Global banking giant Standard Chartered anticipates that Bitcoin (BTC) could surge close to $200,000 by the close of next year, given the success and approval of Bitcoin exchange traded funds in the United States. This price forecast is contingent on the presumption that between 437,000 and 1.32 million Bitcoin will be secured in spot Bitcoin ETFs listed in the United States by the termination of 2024. The bank correlates this to inflows between $50 and $100 billion. Geoff Kendrick, head of digital assets, and Suki Cooper, precious metals analyst at Standard Chartered, suggested in a report on Jan. 8 that if inflows from ETFs occur as anticipated, Bitcoin may hit close to USD 200,000 by the end of 2025. The report was made public on X (formerly Twitter).
The projection by Kendrick and Cooper of $200,000 necessitates that Bitcoin's current rate of $47,000 escalate 4.3 times. To put this into perspective, the duo from Standard Chartered juxtaposed this with the amplified value of gold exchange-traded products by the same multiple, seven to eight years post their introduction back in November 2004. They anticipate Bitcoin experiencing similar price augmentation post the approval of the US spot ETF, noting the expected swifter development of the BTC ETF market. The executives view the green flag for spot Bitcoin ETFs to be pivotal in regularizing Bitcoin engagement.
The bank's executives highlighted that their recent Bitcoin price forecast aligns with their preceding prediction of Bitcoin valued at $100,000 by the termination of 2024. Amidst the concentrated investor attention towards spot Bitcoin ETFs, some experts advise also considering Bitcoin's enhanced network "fundamentals" when evaluating its price. Jamie Coutts of Pragmatic Blockchain Research, a blockchain strategist, emphasized that Bitcoin's fundamentals are at their peak, as per a logarithmic "Bitcoin Network Activity" vs "Bitcoin Price" graph he shared, produced by blockchain analytics firm CryptoQuant.com on Jan. 8. Coutts, a former cryptocurrency market analyst at Bloomberg Intelligence, stated, “With innovative applications like inscriptions, the fundamentals of Bitcoin's network appear the strongest since the 2016-2017 cycle,” hinting at the current underestimation of Bitcoin’s value.
Bloomberg Intelligence's senior macroeconomic strategist, Mike McGlone, expressed skepticism on Bitcoin maintaining its surge post the potential approval of Bitcoin ETFs. During a Macro Monday talk show with host Scott Melker on Jan. 8, McGlone expressed, "Risk assets have to go down. It’s almost always — that’s what’s missing. And Bitcoin is one of the riskiest assets". He added caution against getting overweight here and advised displaying gratitude instead.
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Published At
1/9/2024 6:38:43 AM
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