This is why the multinational bank predicts Bitcoin at $250,000
British multinational bank – Standard Chartered – has recently updated its Bitcoin (BTC) forecast. He now expects a year-end price of $100,000 to $150,000. The bank thinks Bitcoin will hit a cycle high of $250,000 next year.
After that, it is said that there will be a settlement of around 200,000 dollars.
Why Standard Chartered Predicted Bitcoin Peak at 250,000
This optimistic review is based primarily on a comparative analysis of gold's performance. Specifically, after the US launched gold exchange-traded funds (ETFs) and the subsequent correlation between ETF earnings and the price of Bitcoin.
“If ETF revenues reach our midpoint estimate of $75 billion and/or reserve managers buy BTC, we see a good chance of climbing to $250,000 at some point in 2025,” Standard Chartered said in an investment note.
Moreover, the bank's view on Ethereum (ETH) is equally promising. On May 23, the Securities and Exchange Commission approved the Ethereum ETF, which is estimated to attract up to $45 billion in its first year.
Therefore, the price of ETH could rise to $8,000 by the end of the year, which is close to the current price of $3,570.
Additionally, Standard Chartered will stretch the ETH-to-BTC price ratio to return to the 7% spread level by 2021-22. If we assume that the price of Bitcoin reaches $200,000 by the end of 2025, this would imply an ETH price of $14,000.
Confirming Standard Chartered's bullish stance, Plan B's Stock-to-Flow model predicts a significant increase in the price of Bitcoin. He predicts that Bitcoin will rise to $500,000 during the 2024-2028 half cycle.
Despite these long-term bullish predictions, Bitcoin's current market behavior appears weak. It is now testing a critical support level at $64,500. If it breaks below this support, the price could drop more than 7% to the next support zone, which is between $59,000 and $60,000.
Meanwhile, bitcoin is down roughly 11 percent from its all-time high of $73,777.
Read more: Bitcoin price prediction for 2024/2025/2030
A recent breakout of Bitcoin ETFs has exacerbated this short-term trend. Farside Investors announced a $154.3 million withdrawal on Monday. In particular, Grayscale experienced a huge outflow from GBTC, with a record $642.5 million outflow.
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