Standard Chartered, a famous global financial institution, recently made a prediction that Bitcoin could reach over $200,000 by the end of 2025. This prediction depends on approval and the profitability of Bitcoin exchange-traded funds (ETFs) in the United States. By the end of 2024, between 437,000 and 1.32 million bitcoins are expected to be held in spot bitcoin ETFs that are registered in the United States. This will lead to an inflow of around $50-100 billion. This forecast depends on the assumption that this number will be reached.
Jeff Kendrick and Suki Cooper, two of the bank’s executives, compared the bank’s potential development to the past success of gold exchange-traded funds. They made the observation that the value of these items increased by a factor of 4.3 about seven to eight years after they were first introduced to the market in November 2004. When this trajectory is applied to Bitcoin, they believe that if inflows related to exchange-traded funds (ETFs) materialize as expected, then a price level for Bitcoin that is close to $200,000 may be achievable by the end of 2025.
Kendrick and Cooper consider the approval of spot bitcoin exchange-traded funds (ETFs) to be an important occasion, representing a “tipping point” in the process of normalizing bitcoin participation. In conjunction with these changes, industry experts emphasize the need to take into account Bitcoin’s stronger network foundations. A blockchain expert named Jamie Coates made the observation that Bitcoin’s fundamentals are at an all-time high and that the cryptocurrency’s appeal is enhanced by unique use cases such as captions.
According to Coutts, the price of Bitcoin is still forty percent below its all-time high, indicating that it is undervalued. This is despite the fact that Bitcoin’s fundamentals are strong. With this in mind, the projected flow of investment through exchange-traded funds (ETFs) could be the catalyst for a significant rise in the price of Bitcoin, which could eventually reach the projected $200,000 level by the end of 2025.
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