Standard Chartered Predicts Bitcoin $150K, Ethereum $8K by 2024

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In the dynamic world of cryptocurrencies, where the ripples of innovation perpetually reshape the landscape, Standard Chartered’s latest research notes emerge as a beacon of bullish sentiment for the digital assets behemoth, Bitcoin (BTC), and the versatile platform currency, Ethereum (ETH). The experts within the bank’s analytical team, clothed in years of market knowledge and expertise, have put forth a detailed assessment that paints a prospector’s dream: Bitcoin soaring to a stunning $150,000 and Ethereum climbing to the notable echelon of $8,000 by the end of 2024 and beyond.

These lofty projections are not conjured from thin air, but are rooted in the significant upheavals and groundbreaking strides overtaking the cryptographic domain. Central to this predicted ascent is the inauguration of the much-awaited Bitcoin spot Exchange-Traded Funds (ETFs), which, following their trailblazing deployment on January 11, accumulated rapid inflows that eclipsed the concurrent increases in open interest. The newly launched investment vessels have not only carved out a fresh avenue for capital but signaled a shift to a more anchored and enduring positioning for Bitcoin, diverging sharply from the fleeting spectacle of speculative spikes of days gone by.

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Geoff Kendrick and Suki Cooper, the bank’s discerning analysts, illuminate the newfound stability in Bitcoin investment trends by noting, “Rapid inflows to the new Bitcoin (BTC) spot ETFs have dominated […] Most of the inflows are likely to be sticky pension-type flows.” These words suggest a hitherto unseen bedrock of faith in Bitcoin investments, furthering its legitimacy and appeal among the more cautious cohort of institutional investors.

The triad of foundational analyses underpinning Standard Chartered’s valuation of Bitcoin is of particular note. The ‘Gold Analogy’ draws a parallel with the gold market’s buoyant response to the heralding of US gold ETFs, projecting Bitcoin could rise to the vertiginous heights of the $200,000 level—a 4.3-times leap from its pre-ETF price. The ‘Two-Asset Optimization’ model, ingeniously crafting a portfolio composed of 80% gold and 20% Bitcoin, postulates a Bitcoin level around an impressive $190,000, given the current gold market valuations. Moreover, when the lens of ‘ETF Inflows Correlation’ is applied, a linear extraction based on the correlation between ETF inflows and Bitcoin price points tantalizingly to a possible zenith of $250,000—this, assuming total ETF inflows hover around the bank’s midpoint estimate of a colossal $75 billion.

Scanning the horizon of 2025, Standard Chartered doesn’t shy away from extending its forecast into this further-flung future. The bank’s treatise suggests that a stately $200,000 “is the ‘correct’ end-2025 price level for BTC […] and that it is likely to be the new midpoint for a sideways trading range at that time.” Moreover, should ETF inflows maintain their swift pace and reserve managers gravitate towards BTC acquisitions, an “overshoot to $250,000 is likely at some point in 2025,” a significant upward revision from the bank’s erstwhile prediction of $100,000 by the close of 2024.

In tandem with Bitcoin’s expected rally is Ethereum’s anticipated journey to the $8,000 frontier. Two substantive developments fortify this conviction: the ‘Dencun’ upgrade’s successful deployment which tragically reduces transaction costs on layer 2 blockchains, bolstering Ethereum’s competitive advantage, and the waiting wings of ETH spot ETFs which, should the US SEC nod favorably by May 23, will unlock the gates for a torrent of capital flow.

The mirroring of Bitcoin’s ETF narrative is projected for Ethereum, with an anticipated deluge of 2.39-9.15 million ETH, equivalent to an imposing capital infusion of approximately $15-45 billion. “We expect significant ETF-driven inflows to ETH,” postulates the bank, in what can be seen as a preface to a profound price surge, “This could drive ETH to the $8,000 level by end-2024.”

As the final strands of the future are woven into the bank’s vision, the prognostication for 2025 and beyond for Ethereum marks an ascent to the $14,000 acme, under the assumption of the ETH-to-BTC price ratio reclaiming the revered 7% milestone of the 2021-22 epoch—a valiant testament to the bank’s confidence in the long-term growth and value proposition of these vanguard digital assets.

At the time of this dissemination, BTC traded at $68,401, leaving much room for the unfolding of this bold narrative. As the world watches with bated breath, the odyssey of Bitcoin and Ethereum continues to carve indelible strokes upon the canvas of finance and technology, a saga watched closely by every observant eye in the marketplace.