bitcoin could be experiencing btc/bitcoin-price-plunge-62700/” rel=”nofollow noopener” target=”_blank”>tumultuous price actionbut it is bitcoin/bitcoin-drops-below-64000-arthur-hayes-buy-the-dip/” rel=”nofollow noopener” target=”_blank”>fundamentals remain strong. Despite the risk of prices falling in the short term, Standard Chartered, the global banking giant, has some bullish predictions for btc. According to the bank's emailed investment note, the world's top cryptocurrency could skyrocket to a staggering $150,000 by the end of 2024. Additionally, its long-term forecast is that bitcoin could peak at $250,000 in 2025. .
Standard Chartered Predicts Massive bitcoin Price Rise
The first half of 2024 is almost over and Current bitcoin Price Action has derailed more than many expected. However, analysts at Standard Chartered remain optimistic and have revised their price target to $100,000 by the end of 2024. Now, the bank believes that the price of bitcoin can still rise more than 130% in the second half of 2024 and reach a maximum of $150,000. by the end of the year.
Standard Chartered's analysis is based on the success of gold exchange-traded funds (ETFs) in the US and the rise in the price of gold in the months following their introduction.
“We believe that the gold analogy, both in terms of the impact of ETFs and the optimal portfolio mix, remains a good starting point for estimating the 'correct' btc price level in the medium term,” noted the bank.
Many analysts and industry players have always compared btc to gold. Thanks to its demonstrable scarcity, limited supply of 21 million btc, and status as a non-sovereign store of value, bitcoin is increasingly considered “digital gold” by investors. Just as physical gold has been a hedge against inflation and economic turmoil for centuries, bitcoin is credited with playing a similar role in the digital age.
Furthermore, Standard Chartered believes that the price of btc will continue to rise and reach a high of $250,000 in 2025 before settling around $200,000. This will only become a reality thanks to the success of bitcoin spot ETFs.
“If ETF inflows reach our median estimate of $75 billion and/or if reserve managers buy btc, we see a good chance of a breach of the $250,000 level sometime in 2025,” the note said.
There is no denying that bitcoin Spot ETFs have done wonders for the btc price since their launch in January. Their long-awaited launch saw them break several ETF records as institutions and traditional investors rushed to get in on the action. This caused a corresponding increase in the price of btc, leading to the creation of a new all-time high.
However, interest in spot bitcoin ETFs has steadily declined and last week saw six consecutive days of capital outflows. Some would say that the btc price has become too dependent on bitcoin spot ETF activity. At the time of writing, the 11 ETFs collectively hold $55.55 billion worth of bitcoin, representing 4.39% of the total market capitalization.
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