The Standard Chartered Bank raised its Bitcoin (BTC) price forecast for the end of 2024 by 50% to $150,000. During 2025, BTC is predicted to reach a high of $250,000 before settling around $200,000 as per reports. If a spot exchange-traded fund is approved in the US, Ether (ETH) could reportedly reach $8k by year’s end.
Price prediction surged by 50%
Standard Chartered (STAN) raised its year-end forecast for Bitcoin’s (BTC) price to $150,000 from $100,000. According to an emailed investment note received on Monday, the bank predicted BTC would reach a high next year of $250,000, before settling around $200,000.
Bitcoin is trading at around $68,300 as of press time. At the beginning of the month, it reached $73,000.
It’s known that Spot Bitcoin ETFs began trading in the US in January. But, in its analysis, Standard Chartered compared the price of BTC with the price of gold after gold exchange-traded funds (ETFs) were introduced in the US.
According to the analysts, this target is “correct” in light of the gold analogy. Based on the gold price movements following the introduction of US gold ETFs and the gold vs Bitcoin optimization, the portfolio should reportedly contain 80% gold and 20% Bitcoin as per the analyst.
“Assuming the gold price stays unchanged, the BTC price would need to increase to $190,000 in order for BTC’s share to rise to the 20% indicated by our portfolio optimization,” the analysts noted.
“We think the gold analogy, in terms of both ETF impact and the optimal portfolio mix, remains a good starting point for estimating the ‘correct’ BTC price level medium-term,” the note said. Additionally, “If ETF inflows reach our mid-point estimate of $75 billion, and/or if reserve managers buy BTC, we see a good chance of an overshoot to the $250,000 level at some stage in 2025.”
What about Ethereum?
In addition, Standard Chartered said the Securities and Exchange Commission (SEC) is expected to approve an ether ETF on May 23, resulting in inflows of $45 billion within a year and an ETH price of around $8,000 by the end of 2024. It’s trading at around $3,606 as of now.
“In 2025, we see the ETH-to-BTC price ratio rising back to the 7% level that prevailed for much of 2021-22,” a separate note by Standard Chartered said. “Given our estimated BTC price level of USD 200,000 at end-2025, that would imply an ETH price of $14,000.”
