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Bitcoin Predicted to Reach $150,000 Despite Recent Headwinds
A recent report from Standard Chartered, a British multinational bank, has forecasted that Bitcoin will still reach $150,000 per coin this year despite facing a series of negative headwinds. The report, authored by Geoff Kendrick, a digital assets researcher, highlights that despite challenges such as the war in the Middle East, higher Treasury yields, and a slowdown in cash entering Bitcoin exchange-traded funds (ETFs), the digital asset still has significant room for growth.
Bitcoin recently hit an all-time high of nearly $74,000 but has experienced a subsequent decline, with the current price standing at $64,840 according to CoinGecko data. Despite this, Kendrick remains optimistic about Bitcoin’s trajectory, stating that the asset will continue to climb even in the face of adversity.
The report attributes the stall in ETF flows to various macroeconomic factors, including the impact of higher Treasury yields and geopolitical tensions in the Middle East. Additionally, the report suggests that the initial wave of ETF buying may have reached its peak, with further growth awaiting the inclusion of ETFs in broader macro funds, leading to a small allocation within diversified portfolios.
“We reiterate our end-2024 target levels of $150,000 for Bitcoin and $8,000 for Ethereum,” Kendrick stated.
Standard Chartered had previously predicted that Bitcoin would reach $150,000 per coin this year and also anticipated a significant surge in the price of Ethereum. The report notes that a significant sell-off occurred before Bitcoin’s halving, coinciding with an unprecedented attack by Iran on Israel. Despite these challenges, the approval of several Bitcoin ETFs by the Securities and Exchange Commission in January has played a crucial role in driving Bitcoin’s price up.
Since trading for less than $17,000 in January 2023, Bitcoin has made a remarkable comeback. The accessibility of Bitcoin ETFs, which enable ordinary investors to gain exposure to the asset through traditional brokerage accounts, has further contributed to the digital asset’s price appreciation throughout the year.
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