The CEO of Standard Chartered, Geoffrey Kendrick, has attracted attention in recent days in financial circles with a very clear announcement that Bitcoin could reach $200,000 by the end of 2025.
At this time, against the background of growing interest in cryptocurrencies and increasing institutional investment, he remains optimistic about several factors, which he believes, will drive the demand for Bitcoin, regardless of external economic conditions or the upcoming US presidential election.
Drivers Behind The Prediction
Kendrick says several factors could drive the price of BTC to unprecedented heights. First is the acceptance by institutional investors of Bitcoin as a valid asset class. Millions of dollars worth of money has already poured into newly launched Bitcoin ETFs.
In fact, more than $14 billion has been invested in Bitcoin ETFs since these products were released. This, of course, will not only fill the crypto market with liquidity but also shed more light on its credibility as an alternative investment.
“#Bitcoin Up To $200K This Cycle Regardless Of Election” – Bank Exec
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– 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 cut in 2024 could create a favorable environment for risky assets like cryptocurrencies.
Lower prices often lead to increased borrowing and spending, which can increase demand for assets seen as stores of value, such as Bitcoin.
Bitcoin Halving
Although the prediction made by Kendrick is not immune to politics, the fact that Bitcoin decreased in April 2024 was another important factor affecting the moving parts of the market.
Obviously, one can clearly see from the reduction of the mining reward from 6.25 BTC to 3.125 BTC that there will be smaller coins entering the system moving forward.
BTCUSD trading at $62,792 on the daily chart: TradingView.com
Throughout history, such reductions have caused price declines due to a relative decrease in supply and constant or increasing demand.
The recent halving could lead to big price changes soon. In the past, halvings have often caused huge 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, many traders are eagerly watching the events surrounding this halving to see what kind of impact it could have on the price of BTC.
Market Sentiment and Future Outlook
The basic idea about Bitcoin is always right. Many businesses in the investment sector expect that more people and institutions will seek Bitcoin as a means of investment to prevent inflation and economic instability. Kendrick’s prediction represents such an optimistic view of what could become more common in terms of alpha crypto assets.
Featured image from 360 Mozambique, chart from TradingView