Bitcoin’s price may be experiencing volatility, but its fundamentals remain strong. Despite the short-term risk of price falling, Standard Chartered, a global banking giant, has made some bullish predictions for Bitcoin. According to the bank’s investment note, they believe that Bitcoin could skyrocket to $150,000 by the end of 2024 and potentially peak at $250,000 in 2025.
As the first half of 2024 comes to a close, Bitcoin’s current price action has deviated from expectations. However, Standard Chartered analysts remain optimistic and have revised their price target to $100,000 by the end of 2024. They now predict that Bitcoin’s price could increase by over 130% in the second half of 2024, reaching a peak of $150,000 by the year’s end.
Standard Chartered’s analysis is influenced by the success of gold exchange-traded funds (ETFs) in the US and the subsequent surge in gold prices. They believe that the gold analogy provides a good basis for estimating the ‘correct’ price level for Bitcoin in the medium term.
Many industry experts have compared Bitcoin to gold due to its provable scarcity, limited supply, and status as a non-sovereign store of value. Investors increasingly view Bitcoin as “digital gold” for its potential to serve as a hedge against inflation and economic turmoil in the digital age.
Looking ahead to 2025, Standard Chartered predicts that Bitcoin’s price could continue to rise and reach a high of $250,000 before stabilizing around $200,000. They emphasize that this forecast relies on the success of Spot Bitcoin ETFs, which have had a significant impact on Bitcoin’s price since their launch.
Spot Bitcoin ETFs have attracted institutional and traditional investors since their introduction in January, resulting in a surge in Bitcoin’s price and the creation of new all-time highs. However, interest in these ETFs has waned recently, with six consecutive days of outflows recorded. Some observers argue that Bitcoin’s price has become overly reliant on Spot Bitcoin ETF activity, with these ETFs collectively owning $55.55 billion worth of Bitcoin, representing 4.39% of the total market cap.
While Bitcoin’s price chart may show fluctuations, Standard Chartered’s bullish predictions and the comparison of Bitcoin to digital gold suggest a positive outlook for the cryptocurrency’s price in the coming years. As the market continues to evolve and adapt to new investment vehicles like ETFs, Bitcoin’s potential to reach new price highs remains a topic of interest for investors and analysts alike.
