Standard Chartered’s Bullish Bitcoin Bitcoin Price Prediction
Standard Chartered’s Global Research department released a research note titled “Bitcoin – Price upside from US spot ETF approval” that was written by Geoff Kendrick and Suki Cooper. The note details the potential impact of the imminent approval of spot ETFs for Bitcoin by the U.S. Securities and Exchange Commission (SEC) and forecasts significant price growth for Bitcoin.
Multinational Financial Institution
Standard Chartered is a London-based multinational banking and financial services company operating in several countries with a British and colonial history dating back to the 19th century. Profits mainly come from Asia, Africa, and the Middle East.
Expected Approval of Bitcoin Spot ETFs
The research note begins by highlighting the expected approval of spot ETFs for Bitcoin by the SEC, possibly later this week. This approval is seen as a pivotal moment for Bitcoin, potentially normalizing its participation among institutional investors and driving substantial inflows and price increases.
Predictions for 2024 and 2025
The note projects Bitcoin to reach the $100,000 level by the end of 2024, aligning with previous analyses. Looking further ahead, they suggest that if ETF-related inflows occur as expected, Bitcoin could potentially reach around $200,000 by the end of 2025, translating to an inflow of approximately $50-100 billion.
AllianceBernstein Holding L.P.’s Bullish Forecast for Bitcoin
An October 2023 report by CNBC revealed that AllianceBernstein Holding L.P. (AB), also known as Bernstein, has released a bullish forecast for Bitcoin, predicting its price to reach $150,000 by 2025. This optimistic outlook is based on the expectation that the U.S. Securities and Exchange Commission (SEC) will approve a Bitcoin exchange-traded fund (ETF) in early 2024.
The Importance of Timing in the SEC’s Decision
Gautam Chhugani, an analyst at Bernstein, highlighted the importance of timing in the SEC’s decision. He emphasized that even if one may not personally favor Bitcoin, viewing it objectively as a commodity suggests that the regulatory landscape is favorable for a spot Bitcoin ETF approval.
Mention of Upcoming Bitcoin Halving Event
The note also mentioned the upcoming Bitcoin halving event scheduled for April 2024. During this event, the rewards for Bitcoin mining are halved, a feature programmed into Bitcoin’s underlying code. Chhugani believes that this halving will likely lead to the elimination of less successful miners, thereby consolidating the market share of those who remain.
Hot Take
Standard Chartered’s research suggests that the expected approval of spot ETFs by the SEC could drive significant price growth for Bitcoin, potentially reaching $100,000 by the end of 2024 and around $200,000 by the end of 2025 if inflows occur as expected. CNBC also reports a bullish forecast for Bitcoin by Bernstein, buoyed by expectations of a Bitcoin spot ETF approval and the upcoming halving event as key drivers for future price increases.
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