The Potential for Bitcoin to Reach $200,000 by 2025, According to Standard Chartered
Standard Chartered, a prominent global financial institution, has recently made a prediction that Bitcoin might reach over $200,000 by the end of 2025. This prediction is contingent upon the approval and profitability of Bitcoin exchange-traded funds (ETFs) in the United States.
The bank anticipates that between 437,000 and 1.32 million Bitcoin would be held in spot Bitcoin ETFs listed in the United States by the end of 2024. This would result in inflows of around $50-100 billion. However, it is important to note that this forecast is dependent on the assumption that this number will be reached.
Geoff Kendrick and Suki Cooper, two executives of Standard Chartered, compared the potential development of Bitcoin to the past success of gold exchange-traded funds. They observed that the value of these funds increased by a factor of 4.3 around seven to eight years after they were first introduced to the market in November 2004. Applying this trajectory to Bitcoin, they believe that if the inflows connected to ETFs materialize as anticipated, then a price level for Bitcoin close to $200,000 might be achievable by the end of 2025.
Kendrick and Cooper consider the approval of spot Bitcoin ETFs to be a momentous occasion representing a “watershed moment” in the process of normalizing Bitcoin participation. Alongside these changes, industry experts stress the need to consider the stronger network foundations of Bitcoin. Blockchain expert Jamie Coutts pointed out that Bitcoin’s fundamentals are at an all-time high, and the cryptocurrency’s attractiveness is being bolstered by unique use cases such as inscriptions.
Despite Bitcoin’s strong fundamentals, Coutts notes that its price is still forty percent below its all-time high, indicating that it is undervalued. With this in mind, the projected flood of investment via ETFs could be the catalyst for a significant rise in the price of Bitcoin, potentially reaching the predicted level of $200,000 by the end of 2025.
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