Normal Chartered head of crypto analysis Geoffrey Kendrick predicts Bitcoin will proceed to rally over the approaching 24 months to culminate in a $200,000 worth per coin by the tip of 2025.
Kendrick made the assertion throughout a CNBC interview on Feb. 29. He mentioned that macro and elementary indicators all level to a sustained rally for the flagship crypto.
Normal Chartered has beforehand made comparable predictions earlier than the spot Bitcoin exchange-traded funds (ETFs) had been accepted. On the time, the lender wrote that their approval was important for Bitcoin to climb to $200,000.
New all-time excessive earlier than halving
Kendrick mentioned the heightened demand for Bitcoin will possible trigger the flagship crypto to hit a brand new all-time excessive earlier than the halving, which is lower than two months away. He additionally predicted that Bitcoin will hit $100,000 by the tip of this yr because the halving reduces provide even additional.
The halving occasion, which cuts the reward for mining new bitcoins in half, is anticipated to scale back the inflation fee of Bitcoin from about 1.7% to roughly 0.8%. Mining rewards per block will fall to three.125 from the present 6.25.
It will consequence within the every day provide of Bitcoin falling to 450 BTC from 900 BTC. Traditionally, the 50% discount in new provide has been a serious catalyst for worth will increase in earlier cycles.
One other notable driver behind the bullish outlook is the substantial inflows into spot Bitcoin ETFs launched in the beginning of 2024.
ETFs driving demand
Kendrick highlighted that new Bitcoin ETFs have seen important inflows of $14 billion, with a internet influx, excluding Grayscale’s outflows, of about $6 billion. This equates to roughly 110,000 new Bitcoins being held, considerably boosting the market.
The New child 9 ETFs are absorbing Bitcoin at a mean fee of 10,000 BTC per day, whereas solely 900 BTC are produced every day — that means demand is already 10x increased than the availability.
Kendrick additionally pointed to broader market circumstances and potential shifts in Federal Reserve insurance policies as supportive backdrops for Bitcoin’s ascent. With expectations of Fed fee cuts by mid-year, the easing financial coverage might favor threat belongings, together with crypto.
Moreover, he mentioned that the general development narrative, buoyed by optimistic inventory market developments, mixed with the direct impacts of ETF inflows and the halving occasion, creates a compelling case for Bitcoin’s upward trajectory.
