Bitcoin Price Could Surge to $250,000 by 2025, Predicts Standard Chartered Analyst
TLDR:
- Standard Chartered Bank’s Geoff Kendrick predicts Bitcoin could reach $250,000 by 2025 with continued ETF inflows.
- Bitcoin’s price may settle around $200,000 if ETF inflows persist or if reserve managers announce Bitcoin purchases.
- Kendrick’s analysis suggests a potential overshoot to $250,000 in 2025 if ETF inflows reach $75 billion or if reserve managers acquire Bitcoin.
Standard Chartered Bank’s head of FX research, west and digital assets research Geoff Kendrick forecasts a potential surge in Bitcoin price, projecting it could reach as high as US$250,000 in 2025 if exchange-traded fund (ETF) inflows persist.
Kendrick suggests that if ETF inflows continue or if reserve managers announce Bitcoin acquisitions, the cryptocurrency could settle around US$200,000 by the end of 2025, forming a new trading range midpoint.
Since the launch of Bitcoin spot ETFs on January 11, rapid inflows have dominated, surpassing increases in open interest.
Kendrick notes that while open interest is nearing levels seen in 2021, overall positioning is likely to be more sustainable this time, with a significant portion of inflows coming from pension-type funds.
Standard Chartered analysts, drawing parallels between Bitcoin and gold, anticipate a similar trajectory based on exchange-traded flows.
Kendrick explains that historically, exchange-traded products (ETPs) and ETFs facilitated access to underinvested markets like gold, resulting in substantial price increases.
Applying similar logic to Bitcoin, Kendrick predicts a maturation of the ETF market within one to two years, potentially leading to a price multiple similar to that seen in gold.
Using various methods, Kendrick estimates Bitcoin’s price to range from US$190,000 to US$250,000 by the end of 2025, with a mid-point estimate of US$200,000.
He suggests that if ETF inflows reach a mid-point estimate of US$75 billion, or if reserve managers increase Bitcoin holdings, an overshoot to US$250,000 is likely in 2025.
Furthermore, Kendrick has revised his end-2024 price estimate for Bitcoin to US$150,000, citing the swift impact of ETF inflows on Bitcoin prices.
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