Bitcoin (BTC) could hit an unprecedented $200,000 by the end of 2025, according to Geoff Kendrick, global head of digital assets research at Standard Chartered. The bank executive’s forecast remains steadfast, regardless of who wins the 2024 United States presidential election. Kendrick cites a combination of regulatory shifts, inflationary trends, and increased adoption of Bitcoin exchange-traded funds (ETFs) as driving forces behind this bullish outlook.
One of the key factors influencing this prediction is the potential repeal of Staff Accounting Bulletin-121 (SAB-121), which currently restricts banks from holding digital assets for their clients. According to Kendrick, whether it’s former President Donald Trump or Vice President Kamala Harris in the White House, both are expected to support this regulatory change, paving the way for increased institutional participation in Bitcoin.
In addition to regulatory reform, Kendrick highlights a marginal uptick in inflation as another driver for Bitcoin’s rise. Higher inflation often leads investors to seek out alternative assets like Bitcoin, which has long been viewed as a hedge against fiat currency devaluation. The widening gap between 10-year and 2-year yields, noted by Kendrick, further supports this inflationary trend, signaling a potentially favorable macroeconomic environment for cryptocurrencies.
Kendrick also underscores the importance of positive inflows into Bitcoin ETFs, which have seen growing approval in major markets. With leadership changes likely at the U.S. Securities and Exchange Commission (SEC), particularly the potential exit of SEC Chair Gary Gensler, Kendrick predicts an acceleration in ETF approvals. Solana (SOL) is named as a top contender for future ETF listings alongside Bitcoin and Ethereum. Increased ETF adoption would further bolster Bitcoin’s price by making the asset more accessible to retail and institutional investors alike.
Also Read: MicroStrategy’s 7,420 BTC Buy Spree: A 183% Increase in Holdings, Fueling Bitcoin’s 9% Rally
As the 2024 U.S. presidential election approaches, crypto-related political action committees (PACs) are funneling millions into campaigns to ensure pro-crypto policies are front and center. A recent poll by Gemini reveals that 73% of U.S. respondents consider crypto policy when deciding how to vote, illustrating the growing importance of cryptocurrency in national politics.
Despite the political noise, Kendrick remains confident in Bitcoin’s long-term prospects, forecasting a $125,000 price tag by the end of 2024 if Trump wins and a staggering $200,000 by 2025, regardless of the election outcome.
With regulatory, economic, and institutional tailwinds, Bitcoin appears poised for significant growth in the coming years.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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