Standard Chartered, a multinational bank, has made a prediction that Bitcoin (BTC) could potentially reach nearly $200,000 by the end of the next year if Bitcoin exchange-traded funds (ETFs) are approved and prove successful in the United States.
The bank’s price forecast is based on the assumption that there will be between 437,000 and 1.32 million Bitcoin held in United States-listed spot Bitcoin ETFs by the close of 2024. Standard Chartered estimates this could translate to inflows ranging between $50 billion to $100 billion.
Standard Chartered’s Head of Digital Assets, Geoff Kendrick, and Precious Metals Analyst, Suki Cooper, expressed in a report dated January 8 that, “If ETF-related inflows materialize as we expect, we think an end-2025 level closer to USD 200,000 is possible.” This means that for Bitcoin to reach this level, it would need to increase in value by 4.3 times from its current price of $47,000.
The bank executives also highlighted that this prediction aligns with their earlier forecast of Bitcoin reaching $100,000 by the end of 2024. They view the approval of spot Bitcoin ETFs as a significant moment for mainstream adoption of Bitcoin.
In addition to this, Jamie Coutts, a blockchain strategist from Pragmatic Blockchain Research, pointed out that Bitcoin’s network fundamentals are currently at an all-time high. He cited data from CryptoQuant.com, which indicated that Bitcoin’s network activity is strong, suggesting that Bitcoin has significant utility beyond just being a store of value.
However, Bloomberg Intelligence’s Senior Macroeconomic Strategist, Mike McGlone, expressed a more cautious view. He believes that once Bitcoin ETFs are potentially approved, there may be a risk-off scenario in traditional financial markets, which could affect Bitcoin’s price negatively. McGlone also cautioned against becoming overly bullish and advised caution in light of recent price rallies.
Overall, these perspectives reflect the ongoing discussions and debates surrounding the potential impact of Bitcoin ETFs and the various factors influencing the cryptocurrency’s price in the coming years.
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