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An analyst report from the bank Standard Chartered predicts that Bitcoin will reach the $100,000 mark by the end of 2024 and will be worth $200,000 by the end of 2025.

In related news, Bitcoin topped the charts with a daily gain of about 7 percent, to near $47,000. Other crypto currencies are also on the rise.

What's going on: Crypto investors are excited about a report from Standard Chartered. That predicts the U.S. stock market watchdog SEC will soon approve U.S. trading in spot ETFs for Bitcoin. Such exchange-traded securities will shadow the price of BTC and thus make trading in Bitcoin possible for traditional stock market investors as well. The launch of such securities in the US has been speculated for years.

👉 "ETF adoption is a key driver of upward movements in the BTC price," the analysts write. "We see this as a turning point to normalize institutional money participation in Bitcoin, and we expect approval to drive significant inflows and price appreciation for BTC."

In figures:

  • Standard Chartered expects there to be between $50 billion and $100 billion in inflows to Bitcoin ETFs by 2024, which it forecasts would mean that such trackers will hold between 437,000 and 1.32 million Bitcoins at a price of around $100,000 by the end of 2024.
  • A level of $200,000 by the end of 2025 is possible, the analysts add. By comparison, the historical price record is nearly $69,000 and dates back to November 2021.

Digital gold

The parallel: Standard Chartered's report takes the introduction of similar U.S. securities for gold, in November 2004, as a point of comparison.

  • "The gold price rose 4.3 times in the seven to eight years it took to mature," they write. "We expect Bitcoin to make similar price gains, but we expect these gains to materialize over a shorter period of time (one to two years), given our view that the BTC ETF market will develop more quickly."
  • Bitcoin is often referred to as "digital gold," with the assumption being that, like gold, BTC will always retain its value due to its built-in scarcity and can therefore be an escape investment in times of crisis.

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