Key Points
- Standard Chartered Bank increases its Bitcoin price prediction to $150,000 by the end of 2024.
- The bank maintains its Bitcoin price target of $200,000 for the end of 2025.
Standard Chartered Bank has revised its year-end price prediction for Bitcoin to $150,000, up from its previous forecast of $100,000.
Factors Influencing the Revised Prediction
This new projection is influenced by robust inflows into newly launched spot Bitcoin exchange-traded funds (ETFs) in the United States, among other factors. According to a report by analysts led by Geoffrey Kendrick, the positive price action of Bitcoin also contributed to the revised prediction.
Inflows into spot Bitcoin ETFs are outpacing the growth of open interest in Bitcoin derivatives. The analysts interpreted this as a sign of more sustainable positioning this time around, despite open interest measures nearing stretched levels seen in 2021.
Bitcoin Price Target for 2025
Standard Chartered Bank continues to uphold its Bitcoin price target of $200,000 for the end of 2025. The analysts believe this target is justified based on the gold analogy, specifically, the price movements of gold following the introduction of U.S. gold ETFs and the optimized gold vs. Bitcoin portfolio composition of 80% gold and 20% Bitcoin.
If inflows into spot Bitcoin ETFs reach the bank's mid-point estimate of $75 billion and/or if forex reserve managers begin buying Bitcoin, the bank sees a strong possibility of exceeding this target — with the price potentially reaching $250,000 at some point in 2025.
The analysts also suggested that foreign exchange reserves could become another significant potential cash pool, following the trend of new U.S. pension money. If this happens, they anticipate that the largest and most liquid assets, such as Bitcoin, would receive the majority of the inflows.
