The success of Bitcoin ETFs is pushing Standard Chartered to raise its price forecasts for the end of the year.
Bitcoin to $250,000see more
Standard Chartered Bank has raised its bitcoin price forecast target to $150,000, up from $100,000 previously considered.
This new objective is explained by the continued inflow of capital into ETFs launched in the United States in January. BlackRock and Fidelity ETFs are in the top 5 of the ETF rankings based on year-to-date volumes.
“For 2024, given the larger-than-expected rise in bitcoin since the start of the year, we now estimate that the price of bitcoin could reach $150,000 by the end of the year. That’s 50% more than our previous estimate of $100,000”declare analysts at Standard Chartered Bank in a report published this Monday.
“Most inflows will likely be rigid pension fund-type flows”, we can read. In other words, we might not be able to fall again like the last time, when the fall of FTX caused a decline of more than 70%…
For the end of 2025, Standard Chartered Bank maintains its target of $200,000.
These objectives are based on the one hand on a parallel with the impact of ETFs on gold in the 90s. And on the other hand on the anticipation that classic investment portfolios will replace 20% of their allocation allocated to gold with bitcoin.
The $250,000 threshold could even be reached sooner if ETFs manage to attract $75 billion. In net terms, ETFs have so far sucked in more than $15 billion. We are currently at a rate of approximately $500 million per day.
Standard Chartered also sees bitcoin exceeding its target if “foreign exchange reserve managers” (central banks) were to buy bitcoins.
“It is increasingly likely that large reserve managers will announce the purchase of BTC in 2024”they say.
Is the time for speculation over? Will bitcoin climb smoothly to $200,000?
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