In a notable revision to its market analysis, Standard Chartered, a prominent multinational banking and financial services institution, has elevated its year-end projection for Bitcoin (BTC) to $150,000, up from the previous estimate of $100,000. Furthermore, the bank foresees BTC climbing to a peak of $250,000 by 2025, followed by a stabilization around the $200,000 mark.
This optimistic outlook comes in light of recent developments in the cryptocurrency market, including the introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States in January. Standard Chartered’s analysis draws parallels with the impact of gold ETFs on the price of gold, indicating a potential correlation between ETF inflows and the price of Bitcoin.
“We believe 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,” stated a spokesperson from Standard Chartered. “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.”
In addition to the bullish forecast for Bitcoin, Standard Chartered also weighed in on Ethereum (ETH), predicting that the Securities and Exchange Commission (SEC) could approve an ETH ETF on May 23. This move could potentially lead to inflows of up to $45 billion in the first 12 months and see ETH prices reaching around $8,000 by the end of 2024.
Looking further ahead, Standard Chartered envisions the ETH-to-BTC price ratio rising back to the 7% level that prevailed for much of 2021-22. With an estimated BTC price level of $200,000 at the end of 2025, this would imply an ETH price of $14,000.
Standard Chartered’s updated forecasts reflect a growing confidence in the long-term prospects of Bitcoin and Ethereum, driven by increased institutional interest and the expanding utility of cryptocurrencies in the global financial landscape.