Keeley Adams
Jan 09, 2024 - 01:35

Standard Chartered predicts $200000 BTC by end of 2025

Standard Chartered bank projects Bitcoin to reach $200,000 by 2025 due to ETF inflows, comparing it to the first gold ETF.

Standard Chartered, a British multinational bank, is projecting a significant increase in the value of Bitcoin (BTC) by the end of 2025. They anticipate that the price of Bitcoin will reach $200,000, representing a more than 300% increase from its current trading value. This projection is based on the expectation that Bitcoin spot ETFs will soon be approved and will likely attract $50 billion to $100 billion in flows within a year.

The bank's estimates are based on the performance of the first gold ETF, which was introduced to the U.S. market in November 2004. They believe that Bitcoin ETFs will experience similar levels of inflows, leading to substantial gains in the cryptocurrency's value. The bank's analysts, including digital asset research lead Geoff Kendrick and precious metals analyst Suki Cooper, expect that a Bitcoin ETF could trigger gains of the same magnitude as the gold ETF, but in a much shorter time frame of just one to two years.

The comparison between gold and Bitcoin as scarce forms of money and reliable stores of value is frequently made in financial circles. A Bitcoin ETF would provide investors with easy and familiar access to the asset's price without the complexities of storing the asset themselves.

Standard Chartered's projections suggest that between 437,000 and 1.37 million new Bitcoin will be held in spot US ETFs by the end of 2024, representing a significant amount of inflows in USD terms. This influx of capital could potentially drive Bitcoin's price to a level closer to $200,000 by the end of 2025.

The bank's estimates are based on the assumption that Bitcoin ETFs will develop more quickly than gold ETFs, leading to faster gains in the cryptocurrency's value. They also anticipate that the upcoming Bitcoin halving and the approval of ETF applications by nearly a dozen asset managers, including BlackRock, Fidelity, and Ark Invest, will contribute to the significant increase in Bitcoin's price.

The low management fees offered by these ETF sponsors signal their anticipation of massive assets under management (AUM) expectations, which could further contribute to the sustained growth of Bitcoin's value. The final deadline for the approval or denial of these ETF applications is approaching, and the outcome could have a significant impact on the cryptocurrency market.