Analysts at British multinational banking giant Standard Chartered are raising their 2025 Bitcoin (BTC) price forecast by a sizeable 50%.
Analyst Geoff Kendrick says in a new note to investors that given the unexpected success of the Bitcoin exchange-traded funds (ETFs) launched in January, a more optimistic price expectation for BTC is warranted, reports CNBC.
Says Kendrick,
“We raise our long-held price estimate to the USD 150,000 level from USD 100,000 given the more rapid pass-through from ETF inflows to the BTC price to date.”
According to bitcoinnetfundflow.com, the total amount of assets under management (AUM) in all the Bitcoin ETFs is now over $57.8 billion.
Standard Chartered’s Kendrick says the massive amount of inflows to ETFs, plus the behavior of gold following their launch, are reasons for increased bullishness on Bitcoin looking into 2025.
The analyst says the bank is open to the possibility of an “overshoot” of the target, potentially to the $250,000 range if ETF flows remain strong and more institutions begin allocating.
“This suggests to us that USD 200,000 is the ‘correct’ end-2025 price level for BTC, in line with our previous price estimate … and that it is likely to be the new midpoint for a sideways trading range at that time. It also suggests that an overshoot to USD 250,000 is likely at some point in 2025 if ETF inflows continue apace and/or reserve managers buy BTC.”
In July of 2023, before the launch of the ETFs, Kendrick forecasted a $120,000 price target for Bitcoin in 2024, citing the potential for increased miner profitability, and therefore less sell pressure.
“Increased miner profitability per BTC (Bitcoin) mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher…
It is the equivalent of miners reducing the amount of Bitcoins they sell per day to just 180-270 from 900 currently…
Over a year, that would reduce miner selling from 328,500 to a range of 65,700-98,550 – a reduction in net BTC supply of roughly 250,000 bitcoins a year.”
At time of writing, BItcoin is trading at $68,043.
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