Key takeaways:
- Geoffrey Kendrick believes that Bitcoin will keep rising over the next 24 months, reaching a $200,000 price per coin by the end of 2025.
- He forecasted that Bitcoin would reach $100,000 by year’s end as a result of the supply being further reduced by the halving.
Geoffrey Kendrick, head of research for Standard Chartered, believes that Bitcoin will keep rising over the next 24 months, reaching a $200,000 price per coin by the end of 2025.
Kendrick made the assertion on February 29 in an interview with CNBC. According to him, there is a long-term uptrend for the top cryptocurrency supported by both fundamental and economic facts.
Standard Chartered had previously released similar estimates prior to the introduction of the spot Bitcoin exchange-traded funds (ETFs). The lender claimed that in order for Bitcoin to reach $200,000, their approval was required.
Before the halving, which is less than two months away, Kendrick predicted that the flagship cryptocurrency, Bitcoin, would likely reach an all-time high because of the increased demand.
Additionally, he forecasted that Bitcoin would reach $100,000 by year’s end as a result of the supply being further reduced by the halving.
It is predicted that the halving event, which halves the incentive for mining new bitcoins, will lower the rate of bitcoin inflation from roughly 1.7% to approximately 0.8%. The current 6.25 mining rewards per block will be reduced to 3.125.
As a result, the daily supply of Bitcoin will decrease from 900 BTC to 450 BTC. In the past, price hikes have been significantly triggered by a 50% decrease in new supply.
The significant inflows into spot Bitcoin ETFs that were introduced at the beginning of 2024 are another noteworthy factor supporting the optimistic forecast.
Kendrick emphasized that substantial inflows of $14 billion have been made into new Bitcoin ETFs, with a net inflow of roughly $6 billion when Grayscale’s outflows are taken away. This means that almost 110,000 fresh Bitcoins are being kept, which will greatly increase the market.
With only 900 BTC created daily, the Newborn Nine ETFs are consuming Bitcoin at an average rate of 10,000 BTC per day, implying that the demand is already ten times more than the supply.
In addition, Kendrick mentioned that favorable backdrops for Bitcoin’s rise were general market circumstances and possible changes in Federal Reserve policy. Anticipations of mid-year Fed rate reductions could lead to an easing of monetary policy, which would benefit risk assets like cryptocurrency.
Furthermore, he stated that the narrative of Bitcoin’s general development, supported by optimistic stock market trends and the tangible effects of ETF inflows and the halving event, makes a strong argument for the cryptocurrency’s upward trajectory.
