coindesk.com
Standard Chartered increased its year-end bitcoin price forecast by 50% to $150,000.
The bank also predicted $BTC will reach a high for the cycle of $250,000 during 2025 before settling around $200,000.
The ether price could climb to $8,000 by year-end if a spot exchange-traded fund is approved in the U.S.
Standard Chartered (STAN) raised its year-end forecast for bitcoin's ($BTC) price to $150,000 from $100,000.
The bank also predicted $BTC will reach a high for the cycle of $250,000 next year before settling around $200,000, according to an emailed investment note on Monday.
Standard Chartered based its analysis on a comparison with the price of gold after gold exchange-traded funds (ETFs) were introduced in the U.S. and a correlation between ETF inflows and the $BTC price. Spot bitcoin ETFs started trading in the U.S. in January.
"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 medium-term," the note said.
"If ETF inflows reach our mid-point estimate of $75billlion, and/or if reserve managers buy $BTC, we see a good chance of an overshoot to the $250,000 level at some stage in 2025."
Standard Chartered also said the Securities and Exchange Commission could approve an ether ($ETH) ETF on May 23, leading to inflows of as much as $45 billion in the first 12 months and $ETH reaching around $8,000 by the end of 2024. It was recently trading around $3,570.
"In 2025, we see the $ETH-to-$BTC price ratio rising back to the 7% level that prevailed for much of 2021-22," Standard Chartered said in a separate note. "Given our estimated $BTC price level of USD 200,000 at end-2025, that would imply an $ETH price of $14,000."
Read More: Ether ETFs Could Be Bigger Than Bitcoin ETFs, Says VanEck