The future of Bitcoin looks bright, with Standard Chartered predicting that the price of Bitcoin will rise to $200,000 by 2025, driven by ETFs and supply factors.
Geoff Kendrick, head of foreign exchange research at Standard Chartered Bank, has made a bold prediction for the future of Bitcoin. In his latest report published on Monday, Kendrick expects the U.S. Securities and Exchange Commission to decide 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.
The Impact of Bitcoin Spot ETFs
Anticipation is high for the approval of spot Bitcoin ETFs, which are expected to have a significant impact on the price of Bitcoin. According to Kendrick's analysis, the approval of these ETFs and the subsequent inflows could cause the value of BTC to surge by more than 300% from its current level of around $45,000. He made this prediction based on the assumption that spot US ETFs will attract inflows of $437,000 to $100,000 by the end of 2024, while an estimated 1.32 million new Bitcoins are minted. Potential inflows this year alone are expected to be between $50 billion and $100 billion.
Kendrick’s prediction also takes into account the impact of the upcoming halving cycle and the tendency of miners to hoard coins, both of which could lead to a decline in the available supply of Bitcoin. ETF-driven supply reductions and increased demand could set the stage for a significant price increase, potentially reaching $100,000 by the end of 2024.
Historical context and supply dynamics
In his analysis, Kendrick compared the potential impact of a Bitcoin spot ETF to the historical impact of gold spot exchange-traded products on the price of gold. Following the launch of the SPDR Gold Shares in 2004, the value of gold has risen dramatically, more than quadrupling in seven years. Kendrick used this historical precedent to support his predictions for Bitcoin, predicting a similar or even faster rise in the price of the cryptocurrency.
Bitcoin’s supply dynamics also play a crucial role in Kendrick’s predictions. He notes that the percentage of Bitcoin’s total circulating supply is at an all-time low, suggesting that supply is more price-inelastic than ever before. This means that any increase in demand could have a more pronounced effect on Bitcoin’s price. Bitcoin’s limited and decreasing supply is a fundamental aspect of its design, increasing the likelihood of significant price increases in the event of growing demand. #现货比特币ETF #渣打银行
