Standard Chartered predicts Bitcoin will hit $250,000

British multinational bank Standard Chartered recently upgraded its forecast for Bitcoin (BTC). He now expects its price to reach $150,000 by the end of the year, up from $100,000. The bank also expects Bitcoin to reach a high of $250,000 next year.

After that, it should stabilize around $200,000.

Why Standard Chartered predicted Bitcoin would peak at $250,000

This optimistic review is mainly based on a comparative analysis of the performance of gold. Specifically, following the launch of gold exchange-traded funds (ETFs) in the United States and the subsequent relationship between ETF flows and the price of Bitcoin.

“If ETF flows reach the midpoint of our estimate of $75 billion, and/or reserve managers buy bitcoin, we see a good chance of surpassing the $250,000 level at some point in 2025,” Standard Chartered said in an investment note.

Additionally, the bank's forecast for Ethereum (ETH) is equally promising. The SEC's approval of the Ethereum ETF on May 23 is expected to attract up to $45 billion in its first year. Thus, the price of Ethereum could rise to around $8,000 by the end of the year, from its current price of around $3,570.

Furthermore, Standard Chartered Bank expects the price ratio to return Ethereum To Bitcoin at the current level of 7% in 2021-2022. Assuming that the price BTC If it reaches $200,000 by the end of 2025, that means the price of ETH will reach $14,000.

Confirming Standard Chartered's bullish stance, Plan B's Stock-to-Flow model also predicts a significant rise in the price of Bitcoin. And it is expected During the 2024-2028 halving cycle, the price of Bitcoin could reach $500,000.

Despite these bullish long-term forecasts, the current behavior of the Bitcoin market appears bearish. It is currently testing a crucial support level at $64,500. If it breaks below this support, the price could fall more than 7% until the next support zone, located between $59,000 and $60,000.

Meanwhile, Bitcoin is down almost 11% from its all-time high of $73,777.

Recent outflows from spot Bitcoin ETFs have reinforced this short-term downtrend. I reported Farside Investors reported a net outflow of $154.3 million on Monday. Notably, Grayscale saw significant outflows from GBTC, with a record withdrawal of $642.5 million.