Standard Chartered Bank has made ambitious new forecasts for Bitcoin, projecting its price to rise to $150,000 by the end of 2024, an increase from its previous estimate of $100,000. In an investment note sent via email on Monday, the bank predicts that Bitcoin will reach $250,000 by 2025 before settling at around $200,000.
The bank’s analysis compares Bitcoin to gold, especially following the introduction of gold exchange-traded funds (ETFs) in the United States. Standard Chartered emphasizes the effect of spot Bitcoin ETFs introduced in January, citing a correlation between ETF inflows and Bitcoin’s price.
The continued investment into these new ETFs, combined with Bitcoin’s upward price trend, underpins the bank’s optimistic view. As of March 15, Bitcoin spot ETFs have already seen $12.15 billion in net inflows.
Spot ETF Inflows: Driving Momentum Forward
Inflows into Spot Bitcoin ETFs are surpassing the growth of Bitcoin derivatives’ open interest, signaling a change in market dynamics. Standard Chartered analysts suggest that while open interest metrics are reaching levels seen in 2021, the overall market positioning seems more stable this time.
Most of these inflows are anticipated to come from long-term sources like pension funds, bolstering Bitcoin’s price resilience.
According to Standard Chartered’s projections, Bitcoin’s price could exceed expectations if spot Bitcoin ETF inflows reach $75 billion and/or if foreign exchange reserve managers begin buying the digital currency.
Approval of Ether ETF
Standard Chartered expects the Securities and Exchange Commission (SEC) to approve an Ether (ETH) ETF on May 23. This approval could lead to significant investment into Ethereum, potentially driving its price to approximately $8,000 by the end of 2024, according to the bank’s projections.
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