Standard Chartered Bank has upgraded its year-end forecast for Bitcoin’s price to $150,000, a 50% increase from its previous estimate of $100,000. This revision is based on strong inflows into spot bitcoin exchange-traded funds (ETFs) in the United States, outpacing the growth of bitcoin derivatives’ open interest. The bank also believes that the potential approval of an Ethereum (ETH) ETF by the Securities and Exchange Commission (SEC) on May 23 could drive ETH’s price to $8,000 by 2024.
According to Standard Chartered, if ETF inflows reach an estimated $75 billion or if reserve managers begin acquiring BTC, there is potential for an overshoot in BTC’s price. The bank’s analysis is based 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. 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.
In addition to Bitcoin, Standard Chartered also speculates on the impact of an ETH ETF approval on the cryptocurrency market. The bank suggests that such approval could lead to significant 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 highlights the significance of regulatory developments, ETF approvals, and institutional investment trends in shaping the future trajectory of both Bitcoin and Ethereum. As such, it is important to closely monitor these factors as they could have a significant impact on the cryptocurrency market.
