news.bitcoin.com
Standard Chartered has raised its bitcoin forecast, predicting that the cryptocurrency’s price could reach $250,000 next year and $150,000 this year. The bank also adjusted its ether forecast as it anticipates the approval of a spot ether exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) in May.
Standard Chartered’s Revised Bitcoin Price Forecast
Standard Chartered has revised its bitcoin price forecast for this year and the next. The bank’s revision aligns with the record trading volumes and notable inflows witnessed in spot bitcoin exchange-traded funds (ETFs) in recent weeks.
Geoff Kendrick, Standard Chartered’s head of crypto research, explained that the bank determined its BTC price targets by analyzing bitcoin’s performance in relation to the price of gold following the introduction of gold ETFs in the U.S., and by correlating ETF inflows and the price of BTC. “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,” Kendrick wrote in a note Monday, adding:
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.
The analyst anticipates bitcoin’s price stabilizing at approximately $200,000 in 2025. Standard Chartered similarly said in January that BTC could hit $200K in 2025 with spot bitcoin ETF approval. In April last year, Standard Chartered said crypto winter had ended. In November, the bank noted that “crypto spring has sprung,” emphasizing that BTC could reach $100K sooner than previously predicted.
For this year, Kendrick now anticipates bitcoin reaching $150,000, as the sharper-than-expected gains observed so far this year have boosted his previous estimate of $100,000. He believes that the new spot bitcoin ETFs would introduce BTC to a new group of investors, emphasizing that net inflows have become bitcoin’s largest driver and are likely to be sticky. Also boosting his price forecast is the bitcoin halving event in April.
Bullish Estimates for Ether
Standard Chartered continues to anticipate the approval of a spot ether ETF by the U.S. Securities and Exchange Commission (SEC) in May. In January, Kendrick predicted that ether’s price would climb to $4,000 by the anticipated approval date.
The analyst has turned more bullish on Ethereum since his previous prediction. In a note on Monday, Kendrick projected even greater potential upside for ETH, expecting an SEC approval of an ether ETF to result in inflows of up to $45 billion within the first 12 months, driving ETH’s price to $8,000 by the end of 2024. He also anticipates that Ethereum’s latest upgrade will significantly reduce transaction costs and further boost the price of ETH. The Standard Chartered head of crypto research described:
Given our estimated BTC price level of USD 200,000 at end-2025, that would imply an ETH price of $14,000.
What do you think about Standard Chartered’s bitcoin and ether price predictions? Let us know in the comments section below.