#BTC110KToday? Standard Chartered still maintains its forecast that the price of Bitcoin will reach $200,000 by the end of 2025.
The bank's experts, led by Geoff Kendrick, head of global digital asset research at Standard Chartered, have issued several reports affirming these ambitious forecasts.
Why does Standard Chartered expect this significant rise?
Standard Chartered's forecasts are based on several key factors:
❎Strong ETF Inflows: The bank sees the ongoing and strong capital inflows into Spot Bitcoin ETFs as the main driver of rising prices. These funds attract significant institutional investment and shift part of gold investments to Bitcoin, indicating a change in investors' perceptions of 'safe' assets.
❎Bitcoin Whale Accumulation: Kendrick points out that large Bitcoin holders ('whales') who own more than 1,000 Bitcoins continue to accumulate more coins during recent dips and rallies, indicating strong long-term confidence.
❎Strategic Asset Shift: The bank believes there is a strategic shift in asset allocation away from traditional U.S. assets (such as U.S. Treasury bonds) towards alternative assets like Bitcoin, driven by concerns about inflation, monetary policy, and geopolitical challenges.
❎Corporate Treasury Demand: The number of companies adding Bitcoin to their balance sheets as a reserve asset is increasing, similar to MicroStrategy's strategy. Standard Chartered expects this trend to continue and grow, providing structural support for prices.
❎Exceeding the Previous 'Halving' Pattern: In previous cycles after the Bitcoin halving event, prices tended to decline after about 18 months. However, Standard Chartered sees institutional flows and corporate demand changing this pattern, making the current rise more sustainable.
❎Supportive Policies: The bank expects a more favorable political environment for cryptocurrencies, including the possibility of a change in leadership at the U.S. Federal Reserve and the passing of favorable legislation for stablecoins, which will provide an additional boost to prices.
Challenges and Observations
❎Volatility: Despite the bullish forecasts, the cryptocurrency market remains highly volatile, and there may be significant price fluctuations along the way.
❎No Guarantees: Price forecasts, especially in the digital asset market, are merely estimates and do not represent a guarantee of future performance.
Overall, Standard Chartered's stance reflects growing confidence in Bitcoin as a mature and significant investment asset in institutional portfolios😌😌😌.
