Standard Chartered Forecasts Bitcoin to Hit $200,000 by 2025 with ETF Adoption
British multinational bank Standard Chartered has projected a stratospheric rise for Bitcoin. The bank’s Monday research note boldly forecasts Bitcoin’s value to skyrocket to $200,000 by the close of 2025, marking an astonishing surge of over 300% from its current trading level.
The crux of this eye-opening speculation revolves around the anticipated approval of Bitcoin spot Exchange-Traded Funds (ETFs), a development the bank believes is imminent. Standard Chartered contends that these ETFs could attract an influx of funds ranging between $50 billion to $100 billion within a year.
Central to their analysis is the comparison between Bitcoin and gold, often likened in financial spheres as rare stores of value. Drawing parallels to the introduction of the first gold ETF in the U.S. market back in November 2004, analysts at Standard Chartered predict a similar trajectory for Bitcoin with the advent of a Bitcoin ETF.
— Mike Alfred (@mikealfred) January 8, 2024
Geoff Kendrick, the lead in digital asset research at Standard Chartered, and Suki Cooper, a precious metals analyst, emphasized, “The price of gold rose 4.3 times over seven to eight years following the introduction of the first gold ETP.” Leveraging this historical performance, they foresee a potential analogous ascent for Bitcoin, but at an accelerated pace of one to two years due to the projected swifter development of the Bitcoin ETF market.
The bank’s forecast hinges on the assumption that the Bitcoin ETFs would accumulate between 437,000 to 1.37 million new Bitcoin by the culmination of 2024, translating to an estimated valuation of USD 50-100 billion.
Crucially, the advent of Bitcoin ETFs promises a streamlined avenue for investors to access Bitcoin’s price movements without grappling with the complexities associated with directly managing the asset.
Standard Chartered’s audacious prognosis serves as a testament to the growing credibility and acceptance of cryptocurrencies within traditional financial institutions. It underscores a shift in perception where Bitcoin, once deemed speculative and volatile, is now seen as a potential cornerstone of investment portfolios.
However, it’s important to note that while such projections spark enthusiasm among crypto enthusiasts, they also invite scrutiny and skepticism from critics who remain cautious about the inherent volatility and regulatory uncertainties surrounding the cryptocurrency market.
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