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The British multinational bank – Standard Chartered- recently upgraded its Bitcoin forecast ($BTC). It now expects a year-end price of $150,000, up from $100,000. The bank also envisions Bitcoin hitting a cycle high of $250,000 next year.
After that, it is predicted that there will be a stabilization at around $200,000.
Why Did Standard Chartered Predict Bitcoin Peaking at $250,000
This optimistic revision is primarily based on a comparative analysis of gold’s performance. Specifically, after the US launched gold exchange-traded funds (ETFs) and the subsequent correlation between ETF inflows and Bitcoin’s price.
“If ETF inflows reach our mid-point estimate of $75 billlion, and/or if reserve managers buy $BTC, we see a good chance of an overshoot to the $250,000 level at some stage in 2025,” Standard Chartered said in an investment note.
Moreover, the bank’s outlook on Ethereum ($ETH) is equally promising. It anticipates that the Securities and Exchange Commission’s approval of an Ethereum ETF on May 23 will attract as much as $45 billion in the initial year.
Consequently, $ETH’s price could soar to around $8,000 by year-end, up from its current price of approximately $3,570.
Additionally, Standard Chartered projects the $ETH-to-$BTC price ratio to return to the 7% level prevalent during 2021-22. Assuming Bitcoin’s price hits $200,000 by the end of 2025, this would imply an $ETH price of $14,000.
Corroborating Standard Chartered’s bullish stance, Plan B’s Stock-to-Flow model also forecasts a significant rise in Bitcoin’s price. It predicts that during the 2024-2028 halving cycle, Bitcoin could escalate to as much as $500,000.
Despite these long-term bullish projections, Bitcoin’s current market behavior appears bearish. It is now testing a critical support level at $64,500. Should it break below this support, the price might plummet over 7% to the next support zone, which lies between $59,000 and $60,000.
Meanwhile, Bitcoin is down approximately 11% from its all-time high of $73,777.
Read more: Bitcoin Price Prediction 2024/2025/2030
Recent outflows from spot Bitcoin ETFs have further fueled this bearish short-term trend. Farside Investors reported a net outflow of $154.3 million on Monday. Notably, Grayscale experienced a significant outflow from GBTC, with a record $642.5 million withdrawn.