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Standard Chartered Bank will raise its Bitcoin price target to $150,000 by the end of the year.
Standard Chartered Bank has raised its Bitcoin price forecast target from the previous $100,000 to $150,000. The new target comes from the sustained strong inflows into Bitcoin exchange-traded funds (ETFs) recently launched in the United States, as well as the positive price trend of Bitcoin. Analysts at Standard Chartered Bank, led by Jeffrey Kendrick, wrote in a report on Monday, "For 2024, given the price surge exceeding expectations year-to-date, we now see the possibility for BTC to reach $150,000 by year-end, up from our previous forecast of $100,000." The analysts noted that spot inflows into Bitcoin ETFs have exceeded the growth in publicly listed Bitcoin derivatives. They stated, "This suggests that while public rates measures are approaching 2021 levels, the overall positioning this time around should be more sustainable." "Much of the inflow is likely sticky pension fund-type money." The price of Bitcoin is currently around $68,000, having reached over $73,000 earlier this month. Standard Chartered Bank continues to maintain its Bitcoin price target of $200,000 by the end of 2025. Analysts stated that this target is "appropriate" based on the analogy with gold. Specifically, the target is based on the price trend of gold following the launch of U.S. gold ETFs and the optimization between gold and Bitcoin, which indicates that 80% of the portfolio is gold and 20% is Bitcoin. Analysts noted, "Assuming gold prices remain constant, the price of BTC would need to increase to $190,000 to bring the BTC share to 20% as indicated by our portfolio optimization." However, if spot inflows into Bitcoin ETFs reach the midpoint estimate of $75 billion for the bank, and/or if sovereign wealth managers begin to buy Bitcoin, the bank believes it is highly likely to exceed this target. At some point in 2025, the price of Bitcoin could reach $250,000. Analysts stated, "Sovereign wealth reserves are another massive sticky (potential) pool of cash that may follow in the footsteps of U.S. new pensions." They added, "If they do so, we expect that the largest and most liquid assets like Bitcoin will receive most of the inflows. We see the likelihood of major reserve management firms announcing purchases of Bitcoin increasing in 2024." Disclaimer: The Block is an independent media providing news, research, and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. The cryptocurrency exchange Bitget is an anchored LP of Foresight Ventures. The Block continues to operate independently, providing objective, impactful, and timely information about the cryptocurrency industry. Here is our current financial disclosure. ©2023 The Block. All rights reserved. This article is for informational purposes only. It is not intended to provide or be used as legal, tax, investment, financial, or other advice. |
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Post time 26-3-2024 13:50:06