Standard Chartered (STAN:LSE), a globally recognized British multinational bank, has significantly adjusted its forecast for Bitcoin (BTC-USD), projecting a 50% increase in the cryptocurrency’s value. The bank anticipates that Bitcoin will achieve a valuation of $150,000 by the end of 2024, marking a substantial uptick from its prior estimate of $100,000, announced in December 2023.
Analytical Foundations for the Revised Prediction
The upward revision is supported by a detailed analysis that explores the potential impact of Bitcoin ETFs in the United States. The analysis draws parallels between Bitcoin’s anticipated performance and the historical impact of gold ETFs on gold prices.
A critical component of this forecast is the expectation that Bitcoin ETF inflows could reach the mid-point estimate of $75 billion. Bitcoin ETFs have witnessed inflows surpassing $12 billion within just two months of their launch.
The Role of Bitcoin Halving and ETF Approvals
The revised forecast also highlights the significant influence of the upcoming Bitcoin halving event and the anticipated approval of more Bitcoin ETFs. STAN expects investments from $50 to $100 billion into Bitcoin over the next year. By the end of 2025, Standard Chartered believes Bitcoin’s valuation could normalize at $200,000.
Bitcoin’s recent market performance is bolstering the bank’s optimistic outlook. The cryptocurrency’s value reached a new high of $73,734 last week before swiftly and strongly moving lower to $64,555.
Standard Chartered also extends its forecast to Ethereum (ETH-USD). The bank predicts ETH could reach $8,000 by the close of 2024, with a potential surge to $14,000 by 2025, assuming the U.S. Securities and Exchange Commission will approve Ethereum ETFs by May 2024. STAN forecasts around $45 billion in inflows within the first 12 months of trading.
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