Is Bitcoin Able To Bankrupt? Standard Chartered Projects $200K in Cryptocurrency Next Year

Bitcoin Bulls: Standard Chartered’s Optimistic Forecast

Geoff Kendrick, the Head of FX Research at Standard Chartered, recently shared a bullish outlook on Bitcoin, raising expectations for a significant surge in its value. The key driver behind this optimistic projection is the potential approval of Bitcoin spot exchange-traded funds (ETFs), which Kendrick believes could propel the leading cryptocurrency to unprecedented heights.

Bitcoin ETF Decision: Wall Street Awaits

Wall Street is closely monitoring this forecast, particularly as the financial industry awaits the Securities and Exchange Commission’s decision, expected by Wednesday. The anticipation adds a layer of excitement, marking a crucial moment for the potential integration of BTC ETFs into traditional financial markets.

Conditional upon the approval of ETFs and the expected inflows, Kendrick envisions a remarkable surge with Bitcoin’s value potentially skyrocketing by over 300% by the end of the upcoming year. He projects an end-2025 BTC price nearing an impressive $200,000. This ambitious scenario is contingent on 437,000 to 1.32 million additional Bitcoins being held in spot US ETFs by year-end 2024, translating to potential inflows of $50-$100 billion in 2024 alone.

A Note of Caution: Historical Comparisons

While investors may be salivating at the prospect of extraordinary returns, Standard Chartered executives inject a note of caution. They draw parallels between this projection and the historical performance of gold Exchange-Traded Products (ETPs), which took seven to eight years to reach a similar valuation multiplier after their launch in 2004.

This stark contrast in timelines raises questions about the feasibility of Kendrick’s prediction and underscores the inherent uncertainty surrounding long-term cryptocurrency forecasts.

Standard Chartered Expects Swift Crypto Surge

Despite historical data suggesting gradual gains, Standard Chartered anticipates a significantly accelerated timeline of 1-2 years for potential Bitcoin price gains following the approval of US spot ETFs. This rapid appreciation is attributed to their conviction of a more agile and rapidly developing BTC ETF market compared to previous iterations.

“We use this 4.3x increase as the basis for Bitcoin, but we expect BTC gains to occur during a short one- to two-year period because we expect the BTC ETF market to mature more quickly,” Kendrick said.

At present, Bitcoin’s trading price stands at $46,650, with a market capitalization of $860 billion. The contrasting timelines of historical data versus Standard Chartered’s accelerated outlook highlight the uncertainties in long-term cryptocurrency predictions.

The Stock-to-Flow Model: Another Bullish Prediction

In the midst of these projections, an analyst who developed the Stock-to-Flow (S2F) model predicts that Bitcoin might exceed $100,000 in 2024 and rise to a staggering $532,000 in 2025. This forecast aligns with the ongoing debate and popularity of Bitcoin ETFs in the market.

Conclusion: The Future of Bitcoin Hangs in the Balance

As the market eagerly awaits the SEC’s decision on Bitcoin ETFs, the crypto community is divided between cautious optimism and skepticism. Whether Bitcoin can break the bank and reach the projected $200,000 next year remains uncertain, but the industry is undoubtedly at a pivotal juncture.

Regardless of the outcome, the debate around Bitcoin’s potential and its role in the financial landscape continues, leaving investors and enthusiasts alike on the edge of their seats.

Featured image from Shutterstock source.

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