Standard Chartered Expects Bitcoin to Reach $200,000 by 2025

Bitcoin’s future looks bright, with Standard Chartered predicting that the price will rise to $200,000 by 2025, driven by ETFs and supply factors.

Geoff Kendrick, head of foreign exchange research at Standard Chartered, has made a bold prediction about the future of bitcoin. In a new report released on Monday, Kendrick predicts that the SEC’s decision to approve the first bitcoin spot ETF. approval of a bitcoin spot exchange-traded fund (ETF) could push the leading cryptocurrency to unprecedented heights, potentially reaching $200,000 by the end of 2025.

Impact of Bitcoin Spot ETFs  Btc mining

Expectations are high that the Bitcoin Spot ETF will be approved, and it is expected to have a significant impact on the price of Bitcoin. According to Kendrick’s analysis, the approval of these ETFs and the subsequent inflow of funds could cause the value of BTC to soar by more than 300% from its current level of around $45,000. He makes this prediction based on the assumption that by the end of 2024, the spot U.S. ETFs will have attracted inflows of between $437,000 and $100,000, while an estimated 1.32 million new bitcoins will have been minted. Potential inflows for this year alone are expected to be between $50 billion and $100 billion.

Kendrick’s forecast also takes into account the impact of the upcoming halving cycle and the tendency of miners to hoard tokens, both of which could lead to a decline in the available supply of bitcoin. the ETF-driven reduction in supply and increase in demand could lay the groundwork for a significant rise in the price, which could reach $100,000 by the end of 2024.

Historical Context and Supply Dynamics

In his analysis, Kendrick compares the potential impact of a Bitcoin spot ETF to the historical impact of products traded on gold spot exchanges on the gold price. Since the launch of the SPDR Gold Shares in 2004, the value of gold has risen dramatically, more than quadrupling in seven years, and Kendrick utilizes this historical precedent to support his prediction for Bitcoin, which anticipates a similar, if not faster, rise in the price of the cryptocurrency.  Bitmain Miner

Bitcoin’s supply dynamics also play a crucial role in Kendrick’s predictions. He notes that the percentage of total bitcoin supply in circulation is at an all-time low, suggesting that supply is more price inelastic than ever. This means that any increase in demand is likely to have a more pronounced impact on the price of bitcoin. Bitcoin’s limited and dwindling supply is a fundamental aspect of its design, increasing the likelihood of a significant price increase in the face of growing demand.