Standard Chartered Raises Bitcoin Price Target to $150,000 by Year-End

Standard Chartered Bank raised its bitcoin price forecast target to $150,000 from its previous estimate of $100,000.

The new target arises, among other factors, from continued strong inflows into the recently launched Bitcoin spot exchange-traded funds in the United States and, consequently, from the positive price development of Bitcoin. “For 2024, given the larger than expected price increases since the start of the year, we now see potential for the BTC

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“The price is expected to reach the $150,000 level by the end of the year, up from our previous estimate of $100,000,” Standard Chartered Bank analysts led by Geoffrey Kendrick wrote in Monday a report.

One-time Bitcoin ETF inflows are outpacing growth in Bitcoin derivatives open interest, analysts said. “This means that even as open interest metrics approach stretched (2021) levels, overall positioning should be more sustainable this time around,” they said. “Most of the inflows will probably be retirement type flows. »

The price of Bitcoin is currently trading around $68,000. It reached over $73,000 earlier this month.

Bitcoin Price Target for 2025

For the end of 2025, Standard Chartered Bank continues to maintain its Bitcoin price target of $200,000.

Analysts said this target was “correct”, based on the gold analogy. Specifically, the target is based on the evolution of the gold price after the introduction of gold ETFs in the United States and the optimization of gold against bitcoin, which suggests 80 % gold and 20% bitcoin in the portfolio, analysts said. “Assuming the price of gold remains unchanged, the price of BTC would need to increase up to $190,000 for the BTC share to reach the 20% indicated by our portfolio optimization,” the analysts noted.

However, if spot bitcoin ETF inflows reach the bank’s median estimate of $75 billion and/or FX reserve managers start buying bitcoin, the bank sees a strong possibility of surpassing that target – with the price potentially reaching $250,000 at some point in 2025.

“Foreign reserves constitute another important (potential) liquidity pool, which could follow in the footsteps of new US pension funds,” the analysts said. “If they do so, we expect the largest and most liquid assets – such as Bitcoin – to receive the most inflows. We see an increasing likelihood that large reserve managers will announce the purchase of BTC in 2024,” they added.

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