Standard Chartered raises year-end target of Bitcoin to $1,50,000
Standard Chartered has revised its year-end prediction for Bitcoin, raising it from $100,000 to $150,000. This bullish trend is expected to persist in the foreseeable future. Additionally, BTC is projected to hit a cycle high of $250,000 before stabilizing around $200,000 next year.
“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 bank said in its note.
It further added, “If ETF inflows reach our mid-point estimate of $75billlion, 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.”
Also read: Bitcoin records largest single-day drop in two weeks, falls over 7%
The bank conducted its analysis by juxtaposing the price of gold following the introduction of gold exchange-traded funds (ETFs) in the U.S. and establishing a correlation between ETF inflows and the price of BTC. Notably, spot bitcoin ETFs commenced trading in the U.S. in January.
Additionally, the bank projected that the Securities and Exchange Commission might sanction an ether (ETH) ETF by May 23, potentially resulting in inflows of up to $45 billion within the inaugural 12 months. Consequently, the bank envisages ETH reaching approximately $8,000 by the conclusion of 2024.
“In 2025, we see the ETH-to-BTC price ratio rising back to the 7% level that prevailed for much of 2021-22. Given our estimated BTC price level of USD 200,000 at end-2025, that would imply an ETH price of $14,000,”the bank said in another note.
Last week saw unprecedented levels of weekly net inflows and trading volume for US spot bitcoin ETFs, coinciding with bitcoin reaching new all-time highs before experiencing a notable retreat.
According to reports, the combined net inflows for the ten spot bitcoin ETFs totaled $2.57 billion during the week. This marked a 15% increase from the $2.24 billion inflows recorded the previous week.
Also read: After Bitcoin’s surge, Ethereum geared to hit the top league with dencun update. Should you invest?
Bitcoin, on Tuesday, experienced a notable decline of over 7%, dropping to $62,500, marking its most significant one-day decrease in a fortnight. This downturn coincided with a widespread sell-off affecting cryptocurrencies and other high-risk assets, including stocks.
Currently, the cryptocurrency is down by 5.6% to $63,650, having reached a two-week low of $62,966, while Ether (ETH) also saw a decline of 6.7% to $3,276.
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Published: 19 Mar 2024, 09:46 PM IST
