Bitcoin is likely to be experiencing tumultuous price action, however its fundamentals remain strong. Despite the danger of worth falling within the brief time period, Standard Chartered, the worldwide banking big, has some bullish predictions for BTC. According to the financial institution’s emailed funding be aware, the world’s main cryptocurrency may skyrocket to an eye-watering $150,000 by the top of 2024. Furthermore, their long-term forecast is that Bitcoin may peak at $250,000 in 2025.
Standard Chartered Predicts Massive Bitcoin Price Surge
The first half of 2024 is sort of over and Bitcoin’s current price action has derailed greater than many expected. However, analysts at Standard Chartered stay bullish and have revised their worth goal of $100,000 by the top of 2024. Now, the financial institution believes the worth of Bitcoin can nonetheless improve by over 130% within the second half of 2024 and attain a peak of $150,000 by the top of the yr.
Standard Chartered’s evaluation is predicated on the success of gold exchange-traded funds (ETFs) within the US and the surge within the worth of gold within the months after their introduction.
“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 financial institution famous.
Many analysts and business gamers have at all times compared BTC to gold. Thanks to its provable shortage, restricted provide of 21 million BTC, and standing as a non-sovereign retailer of worth, Bitcoin is more and more considered as “digital gold” by buyers. Just like bodily gold has been a hedge towards inflation and financial turmoil for hundreds of years, Bitcoin is credited with playing a similar role within the digital age.
Furthermore, Standard Chartered believes that the worth of BTC will proceed to extend and attain a excessive of $250,000 in 2025 earlier than settling round $200,000. This will solely develop into a actuality based mostly on the success of Spot Bitcoin ETFs.
“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 be aware stated.
There’s no denying that Spot Bitcoin ETFs have executed wonders for the worth of BTC since their launch in January. Their long-awaited launch noticed them break varied ETF data as establishments and conventional buyers rushed to get in on the motion. This led to a corresponding improve within the worth of BTC, which led to the creation of a brand new all-time excessive.
However, curiosity in Spot Bitcoin ETFs has dropped steadily, and so they registered six consecutive days of outflows final week. Some would argue that the worth of BTC has develop into too depending on the exercise of the Spot Bitcoin ETFs. At the time of writing, the 11 ETFs collectively personal $55.55 billion price of Bitcoin, representing 4.39% of the whole market cap.
Featured picture created with Dall.E, chart from Tradingview.com
