Hassan Maishera
TL;DR
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Standard Chartered has raised its BTC prediction to $150k by the end of the year, up by 50% from its previous prediction.
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The bank also expects BTC to reach a high of $250k in 2025.
Standard Chartered Expects BTC to Hit $250k in 2025
Standard Chartered has raised its year-end forecast for Bitcoin’s price by 50%. The financial institution predicts that BTC will reach $150,000 by the end of 2024, up from its previous prediction of $100,000.
The bank also predicted that BTC will set a new high in this cycle of $250,000 in 2025 before settling around $200,000 per coin. This is according to an emailed investment note sent by the bank on Monday.
The prediction was based on the bank’s comparison analysis with the price of gold after gold ETFs were introduced in the United States. The analysis also looked at the correlation between ETF inflows and the BTC price. The bank said,
"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 in the medium-term. If ETF inflows reach our mid-point estimate of $75 billion, and/or if reserve managers buy BTC, we see a good chance of an overshoot to the $250,000 level at some stage in 2025."
Standard Chartered is Optimistic of an Ether ETF
Standard Chartered also predicted that the US Securities and Exchange Commission could approve an ether (ETH) ETF in May. The approval of an Ether ETF could attract inflows of as much as $45 billion in the first 12 months and would see ETH hit the $8,000 mark by the end of 2024.
"In 2025, we see the ETH-to-BTC price ratio rising back to the 7% level that prevailed for much of 2021-22. Given our estimated BTC price level of USD 200,000 at end-2025, that would imply an ETH price of $14,000," the bank said.
BTC and ETH are still consolidating following last week’s rally. BTC set a new all-time high of $73k last week while Ether was trading above $4k per coin. However, BTC is down by 7% in the last seven days and is now trading around $66k while Ether is down below $3,500 per coin.
