By
Temitope Olatunji
April 26th, 2024
Looking ahead to 2025, Standard Chartered predicted that the ETH-BTC price ratio will return to levels seen in 2021-2022, potentially reaching 7%.
British multinational bank, Standard Chartered Plc (LON: STAN) has revised its forecast for the prices of both Bitcoin (BTC) and Ethereum (ETH), painting a more bullish outlook for these leading digital assets.
Standard Chartered Bullish Outlook for BTC
According to a recent Coindesk report, Standard Chartered increased its year-end price forecast for BTC to $150,000 from $100,000. In addition, the bank predicts that Bitcoin will reach a cycle high of $250,000 in 2025 before stabilizing at the $200,000 mark. This optimistic outlook is supported by an analysis that draws parallels between Bitcoin and gold, especially in light of the introduction of the underlying exchange traded funds (ETFs) in the United States.
Standard Chartered noted in its analysis that the launch of spot Bitcoin ETFs in the United States in January could have a huge impact on Bitcoin’s price. Based on the historical correlation between ETF inflows and Bitcoin prices, the bank predicts that ETF inflows of up to $75 billion could propel Bitcoin’s price well above the $200,000 mark, potentially reaching $250,000 by 2025.
Standard Chartered’s recent Bitcoin prediction is way higher than its previous price. In February, the bank forecasted that Bitcoin could reach $120,000 by the end of 2024. The prediction was influenced by Bitcoin miners who were increasingly holding onto their Bitcoin reserves instead of selling. The bank emphasized at the time that as profitability for miners rises, the limited supply of Bitcoin may continue to drive prices higher.
As of the time of writing, Bitcoin is trading at $68,444, demonstrating an increase of 2.8% in the past 24 hours, with its market capitalization standing at $1.3 trillion. Notably, Bitcoin recently recorded an all-time high of $73,000 amid a broader crypto market rally. Accordingly, Samson Mow, an important figure in the Bitcoin community, hinted that Bitcoin could rise to $1 million.
One notable factor mentioned by Samson is the Bitcoin halving event, which is expected to take place in April aimed at reducing the block reward for mining new blocks from 6.25 BTC to 3.125 BTC. This mechanism, which is intended to trigger scarcity, has historically played an important role in driving up the value of BTC.
The Impact of ETF on Ethereum’s Price
Standard Chartered’s optimistic forecast didn’t stop at Bitcoin. The bank went on to state that it expects the US Securities and Exchange Commission (SEC) to approve an Ethereum ETF by May 23, which could result in inflows of up to $45 billion into the altcoin within the first year.
According to the bank’s analysis, this influx of capital, combined with growing interest in Ethereum’s technology and ecosystem, could drive the cryptocurrency’s price to around $8,000 by the end of 2024, up from its current trading price of around $3,570.
This revised forecast comes only after a prior $4,000 price target. Looking ahead to 2025, Standard Chartered predicted that the ETH-BTC price ratio will return to levels seen in 2021-2022, potentially reaching 7%. Based on its projected Bitcoin price of $200,000 by the end of 2025, this translates into an Ethereum price of $14,000.