Geoff Kendrick, the digital assets research leader at Standard Chartered, has once again expressed confidence in Bitcoin reaching $150,000 by year-end, despite market instability and geopolitical pressures. In an extensive conversation with BNN Bloomberg, Kendrick emphasized the influential factors of ETF investments and impending halving occurrences shaping Bitcoin’s value.
Why Bitcoin Is Set For A Rally To $150,000 By Year-End
One key factor identified by Kendrick is the large amount of money flowing into Bitcoin ETFs in the USA. Since their launch in early 2024, these ETFs have attracted around $12 billion in total investments. According to Kendrick, “The inflow of funds into US-based Bitcoin ETFs has significantly influenced the market’s supply and demand dynamics in 2024. This is a major development in the growth trajectory of these ETFs.”
Kendrick pointed out the similarities between the development of Bitcoin and gold’s past price patterns after the launch of gold ETFs. He further estimated that the influx of funds into the US gold ETF market, from its beginning in 2021 until it reaches maturity, could amount to between $50 billion and $100 billion.
Another significant influence identified was the Bitcoin halving, an occurrence that cuts in half the reward given to miners for creating new blocks and consequently decreases the daily production of new Bitcoins from 900 to 450 units.
Kendrick acknowledged that this upcoming halving may not be as critical as past ones, but he still believes it holds importance for short-term coin supply adjustments. He explained, “With the halving in place, we’ll produce half the new coins compared to before, which will have a subtle yet noticeable effect.”
In response to doubts raised about Bitcoin, specifically comments from JPMorgan CEO Jamie Dimon labeling it as a “Ponzi scheme,” Kendrick explained the defense of Bitcoin’s fundamental mechanism. He emphasized, “Many people don’t grasp the essential workings of Bitcoin. The true value lies in its blockchain technology, which holds promise for the future.”
Looking Further Ahead
Kendrick went on to describe how blockchain technology could revolutionize sectors beyond finance, with Bitcoin serving as the pioneer and currently the largest crypto asset representing over half of the market. However, this paves the way for Ethereum and other applications, and in the next five to ten years, it’s plausible that significant parts of traditional finance will adopt this technology.
In addition, he acknowledged the recent market instability and explained that before the Bitcoin halving, there was a major sell-off causing approximately $260 million worth of Bitcoin leveraged positions to be liquidated. The executive from Standard Chartered viewed this as a necessary correction, potentially leading to a stronger recovery after the halving. He commented, “The Bitcoin market has seen a significant drop, with around $260 million in leveraged Bitcoin positions being terminated over the weekend. Therefore, the market appears more balanced heading towards the halving.”
According to Kendrick’s point of view, Bitcoin’s future trend looks promising. He anticipates not just a rebound but a significant price surge due to the evolution of the ETF market and continuous technological improvements. By the close of 2025, he envisions Bitcoin being worth an impressive $200,000 per coin.
At press time, BTC traded at $66,556.
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2024-04-23 09:40