April 19, 2024
Standard Chartered Forecasts Bitcoin's Surge to $200,000
Bitcoin News

Bitcoin’s Potential $200,000 Value: Standard Chartered’s Prediction

Standard Chartered, an international bank, has made an intriguing prediction about Bitcoin’s potential trajectory. They foresee Bitcoin’s value soaring to almost $200,000 by the close of the following year, provided that the United States greenlights and effectively implements Bitcoin exchange-traded funds (ETFs). The bank’s prognosis hinges on an estimated holding of between 437,000 and 1.32 million bitcoins within spot Bitcoin ETFs listed in the United States by the close of 2024. This accumulation is expected to yield an influx of approximately $50 billion to $100 billion.

Geoff Kendrick, Standard Chartered’s head of digital assets, and Suki Cooper, the precious metals analyst, emphasized this point in a report released on January 8, which was widely circulated on X, formerly known as Twitter. Their forecast of Bitcoin reaching $200,000 implies a 4.3-fold increase from its present value of $47,000.

Interestingly, the executives drew a comparison with the trajectory of gold exchange-traded products. They noted that after the launch of gold ETPs in November 2004, the value surged approximately 4.3 times in a span of seven to eight years. Applying a similar analogy to Bitcoin, they anticipate comparable gains but within a shorter duration of one to two years, predicated on their belief in the rapid evolution of the BTC ETF market. They perceive the approval of spot Bitcoin ETFs as a pivotal moment for legitimizing Bitcoin participation in traditional financial avenues.

Moreover, this bold prediction aligns with Standard Chartered’s prior forecast of Bitcoin reaching $100,000 by the conclusion of 2024. The attention of investors has primarily been fixated on the potential of spot Bitcoin ETFs. Yet, there’s another perspective brought forth by industry expert Jamie Coutts of Pragmatic Blockchain Research. Coutts emphasized Bitcoin’s reinforced network “fundamentals” as an essential aspect to consider in evaluating its price. He highlighted that Bitcoin’s current network fundamentals are exceptionally robust, displaying unprecedented strength, notably in comparison to the cycle of 2016–2017.

Coutts emphasized the underappreciated nature of Bitcoin’s current value, stating that despite its exceptional performance, it still lingers at 40% below its peak, signifying an undervaluation. However, not all industry figures share the same level of confidence in Bitcoin’s sustained rally after the potential approval of Bitcoin ETFs. Bloomberg Intelligence’s senior macroeconomic strategist, Mike McGlone, expressed skepticism, stating that Bitcoin’s classification as one of the riskiest assets might pose challenges. He cautioned against overcommitting to Bitcoin at its current juncture, citing the asset’s recent significant rallies as a point of concern. McGlone underscored the crucial week ahead, indicating potential risks associated with either a delay or launch of Bitcoin ETFs and cautioning against excessive bullishness amidst elevated hype.

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