Standard Chartered Raises Bitcoin Price Target to $150,000, Citing Strong ETF Inflows

Standard Chartered Bank has revised its Bitcoin price target from $100,000 to $150,000 for 2024, citing strong inflows into Bitcoin spot ETFs and the positive price trend. The bank maintains its $200,000 target for 2025, based on the gold analogy and the potential for inflows from foreign reserve managers.

Standard Chartered Hikes Bitcoin Price Target to $150,000, Citing Strong ETF Inflows

Standard Chartered Bank has raised its price target for Bitcoin to $150,000, a significant increase from its previous estimate of $100,000. This upward revision stems from several factors, including the sustained inflows into recently launched Bitcoin spot exchange-traded funds (ETFs) in the United States and the subsequent positive price momentum of the cryptocurrency.

"For 2024, given the larger than expected price increases since the start of the year, we now see potential for the BTC price to reach the $150,000 level by the end of the year, up from our previous estimate of $100,000," Geoffrey Kendrick and his team of analysts wrote in a report published Monday.

The report highlights the outperformance of Bitcoin ETF inflows compared to the growth in Bitcoin derivatives open interest. This indicates a more sustainable overall positioning, as opposed to the stretched levels seen in 2021. Analysts believe that a significant portion of these inflows are likely attributable to retirement-type accounts.

Currently trading around $68,000, Bitcoin reached a high of over $73,000 earlier this month.

Bitcoin Price Target for 2025: $200,000 and Beyond

Standard Chartered maintains its Bitcoin price target of $200,000 for the end of 2025. This target is based on the analogy to gold, specifically the evolution of the gold price following the introduction of gold ETFs in the United States. The analysts have optimized a portfolio consisting of 80% gold and 20% Bitcoin, suggesting that Bitcoin's price would need to reach $190,000 to achieve this allocation.

However, the bank acknowledges the potential for exceeding this target if spot Bitcoin ETF inflows reach its median estimate of $75 billion or if foreign exchange reserve managers begin purchasing Bitcoin. In such a scenario, the price could potentially climb to $250,000 at some point in 2025.

"Foreign reserves constitute another important (potential) liquidity pool, which could follow in the footsteps of new US pension funds," the analysts said. "If they do so, we expect the largest and most liquid assets – such as Bitcoin – to receive the most inflows. We see an increasing likelihood that large reserve managers will announce the purchase of BTC in 2024."

Disclaimer:

The information provided in this article is for informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.