A Standard Chartered executive, Geoffrey Kendrick, has attracted attention in financial circles in recent days with an extremely vivid statement that bitcoin could reach $200,000 by the end of 2025.
This time, against a backdrop of heightened interest in cryptocurrencies and growing institutional investment, he remains optimistic about several factors that he believes will drive demand for bitcoin, regardless of external economic conditions or the upcoming US presidential election.
Factors behind the prediction
Kendrick says that several factors could push the price of btc to previously unseen heights. The first is the acceptance of bitcoin as a valid asset class by institutional investors. Millions of dollars worth of capital have already poured into recently launched bitcoin ETFs.
In fact, over $14 billion has flowed into bitcoin ETFs since these products debuted. This, of course, will not only fill the cryptocurrency market with liquidity, but will also shed more light on its credibility as an alternative investment.
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“twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoin “We will reach $200,000 THIS cycle regardless of the elections” – Banking executive
Live at 4:00 pm (US Eastern Time): https://t.co/JhOlAKIMjH
— Cryptocurrency News Alerts (@CryptoNewsYes) twitter.com/CryptoNewsYes/status/1837582459892125953?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>September 21, 2024
Additionally, Kendrick highlights the potential impact of macroeconomic trends. He suggests that Federal Reserve interest rate cuts in 2024 could create a more favorable environment for risk assets like cryptocurrencies.
Lower rates generally lead to more borrowing and spending, which can increase 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 halving occurred in April 2024 was another crucial factor that affected the moving parts of the market.
Obviously, it can be clearly deduced from the reduction of the mining reward from 6.25 btc to 3.125 btc that there will be fewer new coins entering the system in the future.
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BTCUSD trading at $62,792 on the daily chart: TradingView.com
Throughout history, such bitcoin-halving-4843769#:~:text=The%20Bitcoin%20halving%20refers%20to,market%20conditions%20remain%20the%20same.” target=”_blank” rel=”noopener nofollow”>halves have generated price appreciation by virtue of the associated reduction in supply coupled with continued or increasing demand.
The recent halving could lead to big price swings soon. In the past, halvings often led to big price jumps, such as in 2020, when bitcoin went from around $8,600 to over $60,000 in a year.
While past performance is no guarantee of future results, most traders are keenly watching the events surrounding this halving to see what kind of impact it could have on the price of btc.
Market sentiment and future prospects
The underlying sentiment on bitcoin remains positive. Many entities within the investment space expect more individuals and institutions to turn to bitcoin as an investment vehicle to hedge against inflation and economic instability. Kendrick’s prediction represents an optimistic outlook on what may become even more mainstream with regards to the alpha crypto asset.
Featured image from 360 Mozambique, chart from TradingView
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