Crypto
Bitcoin Set to Hit $200K by 2025, Driven by Institutional Investments, Says Standard Chartered Bank
Bitcoin, currently trading above $100,000, is projected by Standard Chartered to hit $200,000 by 2025, driven by institutional investment in Bitcoin ETFs and growing adoption by pension funds and banks. Rising Bitcoin options activity and strong “HODLing” signal investor confidence, while Ethereum is also forecasted to triple, reaching $10,000 amid slower ETF adoption.
Bitcoin (BTC) is relatively tight at prices above $100,000. But Standard Chartered Bank expects the price to reach $200,000 per Bitcoin by the end of the year. What will move the markets in 2025?
The big boost from Donald Trump’s US presidency to Bitcoin’s price curve has so far failed to materialize, but with prices between $100,000 and $105,000, BTC is holding its own. Based on this situation, Standard Chartered Bank has reiterated its forecast that Bitcoin will reach prices of $200,000 by the end of 2025. The analysts cite large pension funds in the US that would invest in Bitcoin ETFs as a decisive factor for significant BTC price gains.
Data from SoSo shows that the Bitcoin ETFs launched in January 2024 are currently seeing daily capital inflows again, totaling just over $1 billion this week. Standard Chartered expects an increase in capital flows towards Bitcoin ETFs this year compared to 2024, when a total of just over $36 billion was counted.
In addition to pension funds, major banks are seen as the institutional investors who are developing an appetite for Bitcoin ETFs. As financial instruments traded on traditional exchanges, Bitcoin ETFs have made it easy for such institutional investors to include the leading crypto currency in their strategies.
Bitcoin options, whose trading on the US exchange only began in November 2024, also provide an indication of short- and medium-term BTC price developments. Here, the SoSo data show that around twice as many positions are on calls rather than puts, meaning that they generally see rising Bitcoin prices coming.
Here, experts also refer to the current weekly report from Glassnode, which states: BTC held by investors for 155 days or longer are less likely to be for sale than they were a month ago. This suggests that so-called HODLers do not consider the current Bitcoin price levels to be attractive enough to take profits.
Conclusion: Another record year for Bitcoin?
In the crypto year 2024, Bitcoin recorded a net gain of around 120 and several new all-time highs of up to $108,000. If Standard Chartered Bank is right, Bitcoin would roughly double its value in 2025.
For Ethereum (ETH), the number two cryptocurrency, the bank has set the price target at $10,000 by the end of the year, which would mean a tripling of the current price of around $3,200. Here, too, Ethereum ETFs and institutional investors are expected to trigger a rally. However, Ethereum ETFs are having a harder time than hoped and ETH is not receiving nearly as much public attention as Bitcoin is enjoying.
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(Featured image by Traxer via Unsplash)
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