Jeffrey Kendrick, a Standard Chartered executive, has been drawing attention in financial circles in recent days with his very clear announcement that Bitcoin could hit $200,000 by the end of 2025.
This time around, against the backdrop of growing interest in cryptocurrencies and increased institutional investment, he remains bullish on several factors that he believes will drive demand for Bitcoin, regardless of external economic conditions or the upcoming U.S. presidential election.
Drivers behind forecasting
Kendrick argues that there are a number of factors that could drive Bitcoin’s price to unprecedented levels. The first is institutional investors’ acceptance of Bitcoin as a valid asset class. Millions of dollars of capital have already poured into recently launched Bitcoin ETFs.
In fact, over $14 billion has been invested in Bitcoin ETFs since the products were launched. This will not only fill the cryptocurrency market with liquidity, but will also shed more light on its credibility as an alternative investment.
“#Bitcoin “We expect to hit $200,000 this cycle regardless of the election,” bank executive says
Live at 4pm ET: https://t.co/JhOlAKIMjH
— Cryptocurrency News Alerts 🔥🎙 (@CryptoNewsYes) September 21, 2024
Additionally, Kendrick highlights the potential impact of macroeconomic trends. He suggests that the Fed’s planned rate cuts in 2024 could create a more favorable environment for risk assets like cryptocurrencies.
Low interest rates typically lead to increased borrowing and spending, which can lead to increased demand for assets seen as stores of value, such as Bitcoin.
Bitcoin halving
Although Kendrick’s prediction is immune to politics, the fact that Bitcoin is halving in April 2024 was another crucial factor affecting the moving parts of the market.
Obviously, one can clearly conclude from the decrease in mining reward from 6.25 BTC to 3.125 BTC that there will be fewer new coins entering the system in the future.
BTCUSD trading at $62,792 on the daily chart: TradingView.com
Throughout history, such split in half These developments have led to higher prices due to the accompanying decrease in supply coupled with continued or increasing demand.
The latest halving could lead to major price changes soon. In the past, halvings have often caused significant price spikes, such as in 2020 when Bitcoin’s value rose from around $8,600 to over $60,000 in a single year.
Although past performance does not guarantee future results, most traders are eagerly watching the events surrounding this split to see what kind of impact it could have on the BTC price.
Market sentiment and future expectations
The fundamental sentiment towards Bitcoin remains consistently positive. Many investment entities expect more individuals and institutions to seek Bitcoin as an investment vehicle to hedge against inflation and economic instability. Kendrick’s prediction represents an optimistic view of what could become more commonplace for alpha crypto assets.
Featured image from 360 Mozambique, chart from TradingView
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