An executive of Standard Chartered, Geoffrey Kendrick, has drawn attention in recent days in finance circles with an extremely vivid declaration that Bitcoin may reach $200,000 at the end of 2025.
This time, against a backdrop of increased interest in cryptocurrencies and increasing institutional investment, he remains optimistic on several factors that, he believes, will drive demand for Bitcoin, regardless of external economic conditions or the upcoming US presidential election.
Drivers Behind The Prediction
Kendrick claims that a number of factors could propel the price of BTC to previously unheard-of heights. The first is institutional investors’ acceptance of Bitcoin as a valid asset class. Capital worth millions of dollars has already poured into the recently launched Bitcoin ETFs.
In fact, over $14 billion have entered Bitcoin ETFs since these products debuted. This, of course, will not only fill the crypto market with liquidity but also shed more light upon its credibility as an alternative investment.
“#Bitcoin to Hit $200K THIS Cycle Regardless of Election” – Bank Exec
Live 4pm ET: https://t.co/JhOlAKIMjH
— Crypto News Alerts
(@CryptoNewsYes) September 21, 2024
Additionally, Kendrick highlights the potential impact of macroeconomic trends. He suggests that the Federal Reserve’s interest rate cuts in 2024 could create a more favorable environment for risk assets like cryptocurrencies.
Lower rates typically lead to increased borrowing and spending, which can drive up demand for assets perceived as stores of value, such as Bitcoin.
The Bitcoin Halving
Although the prediction made by Kendrick is immune to politics, the fact that Bitcoin got halved in April 2024 was another crucial factor affecting the moving parts of the market.
Obviously, one can clearly derive from the reduction in the mining reward from 6.25 BTC to 3.125 BTC that there will be less new coins entering the system moving forward.
Throughout history, such halvings have generated price appreciation by virtue of the associated reduction in supply together with ongoing or increasing demand.
The recent halving could lead to big price changes soon. In the past, halvings have often caused major price jumps, like in 2020 when Bitcoin went from about $8,600 to over $60,000 in a year.
Though past performance is no guarantee for future outcomes, most traders are eagerly watching the events surrounding this halving to see the kind of impact it could produce on the price of BTC.
Market Sentiment And Future OutlookThe underlying sentiment about Bitcoin remains steadily positive. Many entities within the investment sphere expect more people and institutions to seek Bitcoin as an investment vehicle for a hedge against inflation and economic instability. Kendrick’s prediction represents such an optimistic outlook of what can become even more mainstream with regard to the alpha crypto asset.
Featured image from 360 Mozambique, chart from TradingView
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments