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Standard Chartered’s head of FX research, Geoff Kendrick, has made a bold prediction regarding the future of Bitcoin. In a recent note released on Monday, Kendrick anticipates that approving a <a href="https://coingape.com/education/bitcoin-spot-etf/" rel="noopener noreferrer nofollow">Bitcoin spot exchange-traded Fund</a> (ETF) could propel the leading cryptocurrency to unprecedented heights, potentially reaching $200,000 by the end of 2025. This projection comes as the financial world eagerly anticipates the Securities and Exchange Commission’s decision to approve the first Bitcoin spot ETF.
<h2 id="the-impact-of-a-bitcoin-spot-etf">The Impact of a Bitcoin Spot ETF</h2>
The anticipation surrounding the approval of a Bitcoin spot ETF is high, with expectations that it could significantly influence the price of Bitcoin. <a rel="noopener noreferrer nofollow" href="https://markets.businessinsider.com/news/currencies/bitcoin-price-outlook-200000-2025-inflows-spot-etf-approval-sec-2024-1#:~:text=Bitcoin%20could%20soar%20344%25%20to,huge%20inflows%2C%20Standard%20Chartered%20says&amp;text=Bitcoin%20could%20reach%20%24200%2C000%20by,massive%20inflows%20and%20price%20gains.">According to Kendrick’s analysis</a>, these ETFs’ approval and subsequent inflows could surge BTC’s value by over 300% from its current level of around $45,000. He bases this prediction on the assumption that spot US ETFs will attract inflows between $437,000 and $100,000 by the end of 2024, coupled with an estimated minting of 1.32 million new Bitcoins. The potential inflows for this year alone are projected to be between $50 billion and $100 billion.
Kendrick’s forecast also considers the impact of the upcoming halving cycle and the tendency of miners to hoard tokens, both of which could lead to a decline in BTC’s available supply. This reduction in supply and increased demand driven by ETFs could set the stage for significant price increases, potentially reaching $100,000 before the end of 2024.
<h2 id="strong-historical-context-and-supply-dynamics-strong">Historical Context and Supply Dynamics</h2>
In his analysis, Kendrick draws a parallel between the potential impact of a Bitcoin spot ETF and the historical impact of the gold spot exchange-traded product on the price of gold. Following the launch of the SPDR Gold Shares in 2004, the value of gold experienced a significant increase, more than quadrupling over seven years. Kendrick uses this historical precedent to bolster his prediction for Bitcoin, expecting a similar if not more accelerated, price increase for the cryptocurrency.
The supply dynamics of Bitcoin also play a crucial role in Kendrick’s forecast. He notes that the percentage of Bitcoin’s total supply in circulation is at an all-time low, indicating that the supply is more price-inelastic than ever. This means that any increase in demand is likely to have a more pronounced impact on <a href="https://coingape.com/price/bitcoin/#:~:text=Bitcoin%20is%20currently%20trading%20at,live%20market%20cap%20is%20%24869%2C306%2C352%2C635." rel="noopener noreferrer nofollow">Bitcoin’s price</a>. The limited and diminishing supply of Bitcoin, a fundamental aspect of its design, adds to the potential for significant price increases in the face of growing demand.&nbsp;
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The post <a href="https://coingape.com/standard-chartered-foresees-bitcoin-hitting-200k-by-2025/" rel="noopener noreferrer nofollow">Standard Chartered Foresees Bitcoin Hitting $200K by 2025</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Standard Chartered Foresees Bitcoin Hitting $200K by 2025

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