Standard Chartered recommends $200,000 in Bitcoin ETFs by the end of 2025
Multinational bank Standard Chartered predicts that bitcoin (BTC) could reach nearly $200,000 by the end of next year, if bitcoin-based currencies are accepted and successful in the United States.
The bank based its price forecast on an estimate of between 437,000 and 1.32 million Bitcoin, which will be held at the end of 2024 in Bitcoin ETFs listed in the United States. The company estimates this to equate to between 50-100 billion dollars in revenue.
“We think ETF-related revenue could reach $200,000 by the end of 2025, if material inflows occur as we expect,” Standard Chartered's head of digital assets Geoff Kendrick and precious metals analyst Suki Cooper said in a Jan. 8 report. Shared by X (formerly Twitter).
Standard Chartered posting some moon bill! $200,000 to come pic.twitter.com/IQueMhjgiP
— Lark Davis (@TheCryptoLark) January 9, 2024
Kendrick and Cooper's forecast of $200,000 means that Bitcoin should increase 4.3 times from its current price of $47,000.
However, Standard Chartered executives said that in the seven to eight years since the gold ETP was launched in November 2004, the price of gold exchange-traded products has multiplied by 4.3.
We expect Bitcoin to enjoy similar price gains due to the adoption of US spot ETFs, but we see these gains compounding in the short-term (one-two-year period) given our view that the BTC ETF market will grow faster.”
Kendrick and Cooper said they see Bitcoin ETF approvals as a “watershed moment” for the normalization of Bitcoin participation.
Bank executives also noted that the latest Bitcoin price forecast is consistent with their forecast of a $100,000 Bitcoin price by the end of 2024.
While many investors' attention is focused around Bitcoin ETFs, one industry researcher says the “fundamentals” of the Bitcoin intensive network should be another consideration when evaluating Bitcoin's value.
Blockchain strategist Jamie Coates of Pragmatic Blockchain Research noted that Bitcoin's fundamentals are at an all-time high, according to a logarithmic “Bitcoin Network Activity by Bitcoin Price” graph shared by blockchain analytics firm CryptoQuant.com on January 8.
“With new use cases like scripts, the fundamentals of the Bitcoin network look very strong from the 2016-2017 cycle,” said Coates, who previously worked as a cryptocurrency market analyst at Bloomberg Intelligence.
“Yet $BTC is still below 40% of its peak,” Coates said. “Undervalued.
According to CT and the media, the only reason #Bitcoin is up 150% in the last year is the pre-ETF launch position. But do the fundamentals support current prices?
To measure the ‘fundamentals' we can look at various components of Bitcoin network activity. This custom… pic.twitter.com/6hFuBHH5LK
— Jamie Coutts CMT (@Jamie1Coutts) January 8, 2024
Related: Gary Gensler warns on crypto ahead of potential Bitcoin ETF approval
Mike McGlone, senior macroeconomic strategist at Bloomberg Intelligence, was not convinced that bitcoin would continue its rally after the adoption of Bitcoin ETFs.
“Risk assets need to be reduced. Almost always – that's what's missing. And Bitcoin is one of the riskiest assets,” McGlone said on Jan. 8 on Macro Monday with host Scott Melker.
“We got the hopium. We collected 50% of $30. [thousand]. We collected 3x from last year. […] You don't want to get too fat here. You want to say thank you. “
“This is the week. If they drag, that's bad. If you start, well, the lessons aren't great, and there's a lot of hype and hype? Yes, as I have seen in other high places,” he added.
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