Normal Chartered Head of Cryptocurrency Analysis Geoffrey Kendrick predicts that Bitcoin will proceed to develop over the following 24 months to peak at $200,000 per coin by the tip of 2025.
Kendrick made the announcement throughout an interview with CNBC on February 29. He stated macro and basic indicators all level to continued development for the flagship cryptocurrency.
Normal Chartered had beforehand made comparable predictions earlier than approving spot bitcoin exchange-traded funds (ETFs). On the time, the lender wrote that their approval was important for Bitcoin to climb to $200,000.
A brand new all-time excessive earlier than the halving
Kendrick stated the elevated demand for Bitcoin is prone to push the flagship cryptocurrency to a brand new all-time excessive earlier than the halving, which is lower than two months away. He additionally predicted that Bitcoin will attain $100,000 by the tip of this 12 months because the halving will cut back provide much more.
The halving occasion, which halves the reward for mining new Bitcoins, is predicted to cut back Bitcoin’s inflation price from round 1.7% to round 0.8%. Mining rewards per block will drop to three.125 from the present 6.25.
This may end result within the each day provide of Bitcoin dropping to 450 BTC from 900 BTC. Traditionally, a 50% discount in new provides has been the principle catalyst for worth development in earlier cycles.
One other vital issue behind the bullish outlook is the numerous inflows into spot bitcoin ETFs launched in early 2024.
ETFs drive demand
Kendrick identified that new bitcoin ETFs have seen vital inflows of $14 billion, with internet inflows, excluding the Grayscale outflow, of about $6 billion. This equates to roughly 110,000 new bitcoins held, boosting the market considerably.
The New child 9 ETFs are sucking up Bitcoin at a median price of 10,000 BTC per day, whereas solely 900 BTC are produced each day – that means that demand is already 10x greater than provide.
Kendrick additionally pointed to broader market circumstances and potential shifts in Federal Reserve coverage as supportive backdrops for bitcoin’s rise. With Fed price cuts anticipated by mid-year, looser financial coverage might favor threat belongings, together with cryptocurrencies.
As well as, he stated, the general development story supported by bullish tendencies within the inventory market, mixed with the direct results of the ETF inflow and the halving occasion, creates a compelling case for bitcoin’s upward trajectory.
