Standard Chartered Forecasts Bitcoin Price Surge to $200,000 by 2025
Standard Chartered Bank predicts a monumental rise in Bitcoin's value to $200,000 by 2025, contingent on the approval of Bitcoin spot ETFs, with major investment firms nearing ETF approval.
In a recent research report, Standard Chartered Bank has projected that Bitcoin’s value could skyrocket to $200,000 by December 2025. This bullish forecast is based on the assumption of the approval of Bitcoin spot Exchange-Traded Funds (ETFs). Bitcoin ETFs, which track the price of Bitcoin, allow investors to gain exposure to its price movements without the need to directly buy and store the digital currency. These ETFs are managed by investment firms that hold Bitcoin.
Several prominent firms, including BlackRock, Grayscale, Ark, Bitwise, VanEck, Wisdomtree, Invesco, Fidelity, and Franklin, have ETFs nearing final approval. Geoffrey Kendrick, head of financial research at Standard Chartered Bank, believes that the approval of these ETFs will be a pivotal moment in normalizing Bitcoin investments, especially among institutional investors. He anticipates that the ETF approval will trigger significant capital inflows and subsequent price appreciation for Bitcoin.
The bank’s forecast is not only optimistic but also consistent with its earlier prediction of Bitcoin achieving a price of $100,000 by the end of 2024. Eric Balchunas, a senior ETF analyst at Bloomberg, shared his views in an interview with Decrypt, foreseeing a rapid growth in the Bitcoin ETF market. He estimates that the market could expand to between $30 billion and $50 billion over three years, eventually reaching around $100 billion in five to ten years.
Balchunas also gauged the likelihood of a Bitcoin ETF receiving approval by the U.S. Securities and Exchange Commission (SEC) in January at 95%. This anticipated approval is viewed as a significant milestone that would facilitate more institutional money flowing into Bitcoin, thereby driving its price upwards.
This analysis by Standard Chartered Bank signals a potential turning point in the cryptocurrency market, especially if the forecasted ETF approvals materialize. Such a development could mark a new era of mainstream acceptance and investment in Bitcoin, with far-reaching implications for the financial industry.
