Standard Chartered Raises Bitcoin Price Forecast to $150K, Predicts $250K High in 2025

Standard Chartered Bank has significantly raised its bitcoin (BTC) price forecast, now predicting the cryptocurrency could hit $150,000 by the end of 2023 – a 50% increase from its previous $100,000 year-end target.

The investment bank is even more bullish on Bitcoin’s prospects for 2025, forecasting that BTC could reach a cycle high of $250,000 next year before stabilizing around $200,000.

This lofty projection is based on Standard Chartered’s analysis comparing bitcoin to gold after the introduction of gold exchange-traded funds (ETFs) in the U.S., as well as the expected correlation between BTC ETF inflows and bitcoin’s price.

“If ETF inflows reach our mid-point estimate of $75 billion, and/or if reserve managers buy BTC, we see a good chance of an overshoot to the $250,000 level at some stage in 2025,” the bank stated in an investment note on Monday.

“We think the gold analogy – in terms of both ETF impact and the optimal portfolio mix – remains a good starting point for estimating the ‘correct’ BTC price level medium-term… If ETF inflows reach our mid-point estimate of $75 billion, and/or if reserve managers buy BTC, we see a good chance of an overshoot to the $250,000 level at some stage in 2025.”

Standard Chartered

Standard Chartered also Bullish on Ethereum

In addition to its optimistic Bitcoin projections, Standard Chartered also provided insights into the potential launch of an Ether (ETH) ETF. The bank predicts that the U.S. Securities and Exchange Commission (SEC) could approve the ETF on May 23, 2023.

This development could lead to a massive $45 billion inflow into Ether ETFs within the first 12 months, propelling the price of ETH to approximately $8,000 by the end of 2024 from its current level of around $3,475.

“The Securities and Exchange Commission could approve an ether (ETH) ETF on May 23, leading to inflows of as much as $45 billion in the first 12 months and ETH reaching around $8,000 by the end of 2024… In 2025, we see the ETH-to-BTC price ratio rising back to the 7% level that prevailed for much of 2021-22. Given our estimated BTC price level of $200,000 at end-2025, that would imply an ETH price of $14,000.”

Standard Chartered

Looking further ahead, Standard Chartered anticipates the ETH-to-BTC price ratio to return to the 7% level observed during 2021 and 2022. Given their Bitcoin price forecast of $200,000 by the end of 2025, this would imply an Ether valuation of $14,000.

Read Also: Spot Ethereum ETF Approval Expected May 23rd, Report

Market Perspectives on Ether ETFs

VanEck, a prominent global investment firm, believes that an Ether ETF could attract significant demand, potentially surpassing that of Bitcoin ETFs.

Despite concerns that Ether ETFs might not distribute staking rewards, making direct purchase and staking of ETH more appealing, VanEck recognizes the inherent value in ETH as a cash-producing asset.

The firm has even temporarily waived the management fee for its Bitcoin Trust to 0% until March 2025 or until it reaches $1.5 billion in assets under management (AUM), a move that has already contributed to substantial growth in the fund’s assets.

With major institutions like Standard Chartered and VanEck expressing confidence in the future growth of Bitcoin and Ether, the stage appears set for significant capital inflows and potential price appreciation in the coming years as adoption and regulatory clarity continue to evolve.

Read Also: Matrixport Predicts a Bullish Run, Aims for $125,000 by December 2024