TheCable

Standard Chartered Plc has raised its 2024 forecast for Bitcoin (BTC) price from $100,000 to $150,000.

In an emailed investment note on Monday, Standard Chartered also predicted BTC will reach an all-time high of $250,000 by 2025 before settling around $200,000.

The financial institution, which based its analysis on a comparison with the price of gold after gold exchange-traded funds (ETFs) were introduced in the United States, said there is a correlation between ETF inflows and the BTC price.

Reports showed Bitcoin ETFs started trading in the U.S. in January.

“We think the gold analogy – in terms of both ETF impact and the optimal portfolio mix – remains a good starting point for estimating the ‘correct’ BTC price level medium-term,” Standard Chartered said.

“If ETF inflows reach our mid-point estimate of $75 billion, and/or if reserve managers buy BTC, we see a good chance of an overshoot to the $250,000 level at some stage in 2025.”

Furthermore, the company said the Securities and Exchange Commission (SEC) in the United States could approve an Ethereum (ETH) ETF on May 23.

This, the bank said, could lead to inflows of as much as $45 billion in the first 12 months and ETH reaching around $8,000 by the end of 2024.

Ethereum had traded as high as $4,000 on March 11, but currently trades around $3,233, according to Coinmarketcap.

In a separate note, Standard Chartered foresees the ETH-to-BTC price ratio rising back to the 7 percent level in 2025 that prevailed for much of 2021 and 2022.

“Given our estimated BTC price level of USD 200,000 at end-2025, that would imply an ETH price of $14,000,” the bank said.

The prices of digital assets have been steadily rising since the approval of the spot Bitcoin exchange-traded funds (ETFs) in the U.S.

On March 14, bitcoin, the world’s largest cryptocurrency by market cap, crossed $73,000 — the highest level so far.

At the moment, the price of Bitcoin is over $62,000.