Standard Chartered Bank has increased its bitcoin price forecast, predicting a rise to $150,000 by the end of the year. This development is the outcome of the cryptocurrencycurrency’s robust price movement and a significant rise in spot inflows into Bitcoin ETFs.
Analysts under Geoffrey Kendrick’s leadership have cited these inflows as the primary rationale for the revised target, which is greater than the earlier prediction of $100,000.
The bank’s research suggests a shift in market dynamics, with inflows into spot Bitcoin ETFs outpacing growth in open interest for derivatives. This pattern suggests that “sticky pension-type flows” are supporting a more stable Bitcoin market.
Standard Chartered maintains its goal of $200,000 for Bitcoin by 2025, citing comparisons to the volatility in the gold market following the advent of exchange-traded funds. Furthermore, if foreign exchange reserve managers begin buying Bitcoin this year, the price might hit $250,000, marking a significant milestone for the cryptocurrencycurrency.
If reserve managers acquire Bitcoin and/or ETF inflows surpass our mid-point prediction of $75 billion, we believe there is a good chance that the price could rise to $250,000 by 2025.
Along with the continued entry of US pension funds, this potential inflow from reserve managers demonstrates the growing confidence in the Bitcoin market’s stability and appeal as a major asset class.