Bitcoin, despite its recent turbulent price action, continues to have strong fundamentals, according to global banking giant Standard Chartered. The bank predicts that the world’s leading cryptocurrency could surge to $150,000 by the end of 2024 and reach a high of $250,000 in 2025. Standard Chartered’s analysis is based on the success of gold exchange-traded funds (ETFs) in the US and the surge in the price of gold following their introduction.
Many analysts and industry players have likened Bitcoin to gold, citing its provable scarcity, limited supply, and status as a non-sovereign store of value. Just as physical gold has been a hedge against inflation and economic turmoil for centuries, Bitcoin is seen as playing a similar role in the digital age. Standard Chartered believes that the price of Bitcoin will continue to rise, especially if Spot Bitcoin ETFs see success, with a potential overshoot to $250,000 in 2025.
Spot Bitcoin ETFs have played a significant role in driving the price of BTC after their launch in January, with institutions and traditional investors rushing to get involved. However, interest in Spot Bitcoin ETFs has waned recently, with six consecutive days of outflows recorded last week. Some argue that the price of BTC has become too reliant on the activity of these ETFs, which collectively own $55.55 billion worth of Bitcoin, representing 4.39% of the total market cap.
Despite the recent ups and downs in Bitcoin’s price, Standard Chartered remains bullish on the cryptocurrency’s long-term potential. The bank’s revised price target of $100,000 by the end of 2024 reflects their confidence in Bitcoin’s ability to rebound and potentially reach $150,000 by the end of the year. The success of gold ETFs provides a positive outlook for Bitcoin’s price trajectory, which is further boosted by its comparison to gold as a store of value.
Standard Chartered’s prediction of a Bitcoin price surge to $250,000 by 2025 is contingent on the success of Spot Bitcoin ETFs and potential inflows from reserve managers. If ETF inflows reach the bank’s mid-point estimate of $75 billion, there is a good chance of Bitcoin overshooting its price target and reaching new highs. The comparison between BTC and gold as a hedge against economic turmoil and inflation highlights the increasing importance of Bitcoin as a digital store of value in the modern investment landscape.
In conclusion, despite the recent fluctuations in Bitcoin’s price and the uncertainties surrounding the market, Standard Chartered remains optimistic about the cryptocurrency’s long-term prospects. With a predicted surge to $150,000 by the end of 2024 and a potential high of $250,000 in 2025, Bitcoin continues to attract attention as a digital asset with significant growth potential. The success of Spot Bitcoin ETFs and potential inflows from reserve managers could further propel Bitcoin’s price to new heights, solidifying its position as a valuable digital asset in today’s investment landscape.