In a recent interview, a top executive from a leading banking institution forecasted a substantial price surge for Bitcoin, driven by three emerging trends: policy changes, inflation expectations, and renewed inflows into spot Bitcoin exchange-traded funds (ETFs). The expert, Kendrick, painted a bullish picture, predicting that these factors could propel Bitcoin to unprecedented levels, with a notable spike expected by the end of 2024.
Policy Changes Could Open The Door For Bitcoin
Kendrick’s optimism starts with potential policy shifts, specifically surrounding the Staff Accounting Bulletin (SAB) 121. Introduced in March 2022, SAB 121 mandates that banks disclose any cryptocurrency assets they hold on their balance sheets. This regulation has been seen as a roadblock for financial institutions interested in adopting crypto, as it restricts the amount of digital assets they can hold.
Despite efforts by both the House and Senate to scrap the policy, President Biden’s administration vetoed the repeal. However, Kendrick believes the upcoming 2024 U.S. presidential election could lead to the regulation’s removal. He speculated that either Donald Trump or Kamala Harris, depending on the outcome, would repeal the rule. Such a shift could pave the way for broader institutional adoption of cryptocurrencies, potentially unlocking billions in untapped demand.
Renewed ETF Inflows to Drive Bitcoin Higher
The next critical factor Kendrick highlighted is the anticipated resurgence of Bitcoin ETF inflows. After a peak earlier this year, inflows into U.S. Bitcoin spot ETFs have been lackluster since July. However, Kendrick expects that starting in October, inflows will return in force. This renewed interest in ETFs could reignite demand, mirroring the significant inflows that pushed Bitcoin to its all-time high of $73,700 in March.
Kendrick anticipates that as inflows accelerate, Bitcoin’s price could follow suit. He also suggested that the approval of more spot ETFs, particularly for assets like Solana, could further fuel the rise.
Another significant factor driving Bitcoin’s expected surge is rising inflation expectations. With inflation concerns persisting globally, investors are increasingly seeking safe-haven assets. Kendrick emphasized that Bitcoin, often referred to as “digital gold,” could become an attractive option for investors looking to hedge against inflation. As inflation climbs, more investors may turn to Bitcoin, boosting its demand and price.
A Trump Victory Could Push Bitcoin to $125,000 by Year-End
Kendrick’s most eye-catching prediction revolves around the potential impact of Donald Trump’s return to the White House. The executive posits that a Trump victory in the 2024 presidential election could drive Bitcoin to $125,000 by the end of this year, largely due to the former president’s pro-crypto stance. Trump and his sons have recently launched a decentralized finance (DeFi) platform, signaling their continued support for digital assets.
Trump has also made it clear that he intends to sack Gary Gensler, the current head of the Securities and Exchange Commission (SEC), on his first day in office. Gensler’s departure, Kendrick argues, could usher in a new era of regulatory clarity for cryptocurrencies, which could further accelerate Bitcoin’s rise.
While a Trump presidency could be a short-term catalyst, Kendrick predicts Bitcoin will reach $200,000 by 2025, regardless of the election outcome. This long-term optimism stems from the belief that institutional adoption will continue to grow, especially as regulations become clearer and more favorable.
As Bitcoin teeters on the edge of another significant price surge, Kendrick’s forecast presents a compelling narrative. With potential policy changes, rising inflation, and renewed ETF inflows all acting as catalysts, Bitcoin could soon break new records. While much of this hinges on the upcoming U.S. presidential election and broader market conditions, one thing is clear: Bitcoin’s journey to six figures is far from over.
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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