Standard Chartered Bank Raises Bitcoin Price Prediction to $150,000 by Year-End
Standard Chartered Bank has revised its bitcoin price prediction target to $150,000 from the previous estimate of $100,000. The new target is based on several factors:
- Continued strong inflows in recently launched spot bitcoin exchange-traded funds (ETFs) in the United States
- Bitcoin’s positive price action
The bank’s analysts led by Geoffrey Kendrick stated that given the sharp price gains year-to-date, there is potential for the bitcoin price to reach $150,000 by the end of 2024. This is an increase from their previous estimate of $100,000.
Spot Bitcoin ETF Inflows Outpace Derivatives’ Open Interest Growth
The analysts at Standard Chartered Bank also noted that spot bitcoin ETF inflows are surpassing the growth of open interest in bitcoin derivatives. They believe that this indicates a more sustainable overall positioning. Additionally, they mentioned that most of the inflows are likely to be sticky pension-type flows.
The current trading price of bitcoin is approximately $68,000, having reached above $73,000 earlier this month.
Bitcoin Price Target for 2025
Standard Chartered Bank maintains its bitcoin price target of $200,000 for the end of 2025. The analysts justify this target based on the gold analogy and portfolio optimization:
- The target is influenced by gold price moves after the introduction of U.S. gold ETFs.
- The gold vs. bitcoin optimization suggests an 80% gold and 20% bitcoin allocation in portfolios.
If the gold price remains unchanged, the bitcoin price would need to increase to $190,000 to achieve the 20% allocation indicated by the portfolio optimization.
However, the bank believes that there is a strong possibility of exceeding this target if certain conditions are met:
- If spot bitcoin ETF inflows reach the bank’s mid-point estimate of $75 billion
- If forex reserve managers start buying bitcoin
In such scenarios, the analysts foresee the price potentially reaching $250,000 at some point in 2025. They suggest that large reserve managers may follow the footsteps of new U.S. pension money and allocate funds to bitcoin.
Hot Take: Standard Chartered Bank Raises Bitcoin Price Prediction
Standard Chartered Bank has raised its bitcoin price prediction target to $150,000 by year-end, citing strong inflows in spot bitcoin ETFs and positive price action. The bank’s analysts also maintain their long-term target of $200,000 for 2025, based on the gold analogy and portfolio optimization. However, they see the possibility of surpassing this target if spot bitcoin ETF inflows reach their estimate or if forex reserve managers start buying bitcoin. Overall, Standard Chartered Bank remains optimistic about the future performance of bitcoin.
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