Geoff Kendrick, head of digital property analysis at Standard Chartered, not too long ago reiterated the financial institution’s formidable Bitcoin value goal of $150,000 by the tip of this yr, regardless of present market volatility and geopolitical tensions. In a complete interview with BNN Bloomberg, Kendrick highlighted the numerous position of ETF inflows and upcoming halving occasions in driving Bitcoin’s value.
Why Bitcoin Is Set For A Rally To $150,000 By Year-End
One of the principal drivers recognized by Kendrick is the exceptional inflow of capital into Bitcoin ETFs inside the United States. Since the inception of those ETFs in early 2024, they’ve witnessed roughly $12 billion in internet inflows. Kendrick highlighted the importance of those developments, stating, “The ETF inflows in the US have dominated really the demand supply metrics in 2024 so far. This is huge in terms of how the ETFs have gone so far.”
He drew parallels between the present traits in Bitcoin and the historical performance of gold following the introduction of gold ETFs. Kendrick elaborated on the potential scale of this pattern by projecting, “From the start of this year to when the ETF market in the US is mature, we’ll get between $50 and $100 billion of inflow.”
In addition to the ETF inflows, the Bitcoin halving occasion was recognized as one other pivotal issue. This occasion, which reduces the reward for mining new blocks thereby halving the speed of latest Bitcoin getting into circulation, is about to cut back the every day manufacturing from 900 BTC to 450 BTC.
Although Kendrick talked about that this halving could be “less important than previous ones,” he nonetheless considers it vital within the short-term provide dynamics. He acknowledged, “Obviously, once we have the halving […], you have only half as many new coins, so that helps at the margin.”
Responding to questions on market skepticism, notably criticism from figures similar to JPMorgan CEO Jamie Dimon, who described Bitcoin as a “Ponzi scheme,” Kendrick supplied a protection of Bitcoin’s underlying expertise. He argued, “There’s a lot of people out there that don’t understand the basic methodology behind Bitcoin. And it’s really that blockchain technology, which is where the value is medium term.”
Looking Further Ahead
Kendrick continued, explaining the transformative potential of blockchain expertise not only for monetary companies however throughout varied industries, “Bitcoin is the first in on that. It’s the largest asset at the moment, makes up for more than 50% of the crypto market, but that opens up the Ethereum and other use cases, which quite frankly, over the next five to 10 years, you can easily see a lot of traditional finance go on chain.”
Furthermore, he addressed the current market volatility, noting that Bitcoin had skilled a big sell-off simply previous to the halving, with $260 million in Bitcoin leverage positions being liquidated. The Standard Chartered exec interpreted this as a market correction which may set the stage for a more healthy build-up post-halving, saying, “We’ve had a large move lower in Bitcoin. Specifically, on Saturday last weekend, there were $260 million Bitcoin leverage positions that were liquidated. So the market is now looking much more square going into the halving, if you like, in terms of leverage.”
Summarizing his perspective on the long run trajectory of Bitcoin, Kendrick expressed a assured outlook, projecting not solely restoration however a strong enhance in Bitcoin’s value, pushed by each the maturation of the ETF market and ongoing technological developments. His imaginative and prescient for Bitcoin by the tip of 2025 reaches even past the present yr’s goal, predicting a possible worth of $200,000 per coin.
At press time, BTC traded at $66,556.
Featured picture created with DALL·E, chart from TradingView.com
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