Geoffrey Kendrick, head of cryptocurrency analysis at Normal Chartered Financial institution, predicts that Bitcoin will proceed to rise over the subsequent 24 months, with the worth of every Bitcoin reaching $200,000 by the tip of 2025.
Kendrick made the assertion in an interview with CNBC on February 29. He stated each macro and basic indicators level to continued beneficial properties for the flagship cryptocurrency.
Normal Chartered had beforehand made comparable predictions forward of the approval of a spot Bitcoin exchange-traded fund (ETF). On the time, the lenders wrote that their approval was vital for Bitcoin to climb to $200,000.
New excessive earlier than halving
Kendrick stated elevated demand for Bitcoin might result in the flagship cryptocurrency hitting all-time highs forward of its halving, which is lower than two months away. He additionally predicted that Bitcoin will attain $100,000 by the tip of the 12 months because the halving additional reduces provide.
This halving occasion, which cuts the reward for mining new Bitcoins in half, is predicted to cut back Bitcoin’s inflation fee from roughly 1.7% to roughly 0.8%. The mining reward per block will drop from the present 6.25 to three.125.
It will trigger the every day provide of Bitcoin to drop from 900 BTC to 450 BTC. Traditionally, a 50% discount in new provide has been the primary catalyst for worth will increase in earlier cycles.
One other notable driver behind the bullish outlook is the huge inflows into the spot Bitcoin ETF launched in early 2024.
ETFs drive demand
Kendrick highlighted that new Bitcoin ETFs have seen inflows of $14 billion, with internet inflows (excluding Grayscale’s outflows) of roughly $6 billion. That is equal to holding roughly 110,000 new Bitcoins, considerably boosting the market.
The New child 9 ETF absorbs a median of 10,000 BTC per day, whereas solely producing 900 BTC per day – which means demand is already 10 instances larger than provide.
Kendrick additionally pointed to broader market circumstances and potential shifts in Fed coverage as a supportive backdrop for Bitcoin’s rise. With the Federal Reserve anticipated to chop rates of interest mid-year, looser financial coverage may gain advantage danger property together with cryptocurrencies.
Moreover, he stated that the general development narrative pushed by optimistic inventory market traits, coupled with ETF inflows and the direct impression of the halving occasion, creates a compelling case for Bitcoin’s upward trajectory.
