Wall Street’s top Bitcoin optimists are revising their short-term price targets following the recent market decline, although their long-term projections remain steady. Standard Chartered, a key player in the crypto space, has reduced its Bitcoin forecasts in a note released on Tuesday.
The bank now anticipates Bitcoin will hit $100,000 by the end of 2025, a decrease from its previous forecast of $200,000, and predicts $150,000 by the end of 2026.
Its long-term goal of $500,000 remains unchanged, although the target date has been adjusted from 2028 to 2030.
This downgrade indicates a shift in demand dynamics. The significant corporate treasury purchases that once fueled growth have diminished, and ETF flows have slowed down.
Geoffrey Kendrick, Standard Chartered’s global head of digital asset research, mentioned that vigorous corporate buying has “run its course.”
“Future price increases will rely on a single factor,” Kendrick stated, referring to ETF inflows. He anticipates consolidation rather than widespread selling.
Bernstein analysts voiced similar sentiments, forecasting Bitcoin to be valued at $150,000 by the end of next year and approaching $200,000 by late 2027, as reported by Bloomberg.
The firm has withdrawn its prediction for a $200,000 peak this year but asserts that Bitcoin is no longer constrained by its historical four-year cycle. Analysts believe that increased institutional participation has fortified the market.
These adjustments come after a challenging period for prices, with Bitcoin dropping nearly 30% from its October peak above $126,000.
Spot Bitcoin ETFs experienced $60 million in net outflows on Monday. BlackRock’s iShares Bitcoin Trust saw approximately $2.3 billion in redemptions in November, marking its largest monthly withdrawal since its inception.
Such outflows account for roughly 3% of the fund’s total assets. Bernstein highlights that overall ETF withdrawals remain below 5% of assets under management. While retail investors hold the majority of ETF shares, institutional ownership has risen to 28%.
Bitcoin price rebound
Despite these forecasts, Bitcoin surged over 4% today, approaching $94,640, elevating its market capitalization to about $1.86 trillion as trading volume increased to $46 billion, reaching a seven-day high.
Institutional interest persisted with Twenty One ringing the NYSE opening bell holding over 43,500 BTC, while PNC became the first major U.S. bank to offer direct spot bitcoin trading to private clients, and Bank of America supported limited digital asset allocations.
Investors are also considering encouraging macroeconomic indicators, including anticipated Federal Reserve rate cuts and comments from Cathie Wood indicating that Bitcoin’s cycle lows may have already occurred.
At the time of writing, Bitcoin is trading near $94,000.
