Standard Chartered predicts Bitcoin price will reach $200,000 by the end of 2025

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British multinational bank Standard Chartered predicts that the price of Bitcoin will reach $200,000 by the end of 2025, an increase of more than 300% compared to current trading hours.

The bank said in a research note on Monday that a spot Bitcoin ETF expected to be approved “soon” could absorb inflows worth $50 billion to $100 billion within a year.

The upside potential offered by Bitcoin ETFs

The bank estimated inflows based on the performance of the first gold-backed ETF to hit the U.S. market in November 2004.

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— Mike Alfred (@mikealfred) January 8, 2024

In the financial world, the precious metal is often compared to Bitcoin as a scarce form of currency and a reliable store of value. Like the gold ETF, a similar Bitcoin ETF would allow investors to gain an easy, familiar understanding of the asset’s price without having to deal with the complexities of storing the asset itself.

Analysts at the bank, including head of digital asset research Geoff Kendrick and precious metals analyst Suki Cooper, explained:

“In the 7 to 8 years after the first ETP was launched, the price of gold increased 4.3 times.”

The author expects Bitcoin ETFs to trigger similar gains in one to two years sooner, as the Bitcoin ETF market is expected to “grow faster.”

Such capital inflows could push Bitcoin prices “to $200,000 by the end of 2025,” according to the bank’s assumptions.

“Assuming that by the end of 2024, U.S. spot ETFs will hold approximately 437,000 to 1.37 million new Bitcoins. In U.S. dollar terms, that number would be approximately $50-100 billion.”

Last month, Standard Chartered predicted that Bitcoin prices would reach $100,000 by the end of 2024, driven by ETF approval and the upcoming Bitcoin halving.