Standard Chartered’s Digital Asset Research arm remains bullish on Bitcoin, reiterating its ambitious $150,000 price target by year-end. Geoff Kendrick, the unit’s head, recently discussed the factors driving this optimism despite current market volatility.
ETFs: A Game Changer for Bitcoin?
Kendrick highlights the surge of capital entering US-based Bitcoin ETFs as a key driver. Launched in early 2024, these investment vehicles have witnessed a staggering $12 billion in net inflows. “The ETF inflows in the US have dominated really the demand supply metrics in 2024 so far,” Kendrick stated, emphasizing the significance of this trend. He projects inflows to potentially reach $50-$100 billion by the time the US ETF market matures.
Another factor influencing Bitcoin’s price is the recently concluded halving event, which will reduced the number of new Bitcoins entering circulation. While acknowledging that this halving might be “less important than previous ones,” Kendrick believes it will still tighten short-term supply dynamics. “Once we have the halving,” he explains, “you have only half as many new coins, so that helps at the margin.”
Kendrick addressed market skepticism towards Bitcoin, particularly criticism labeling it a “Ponzi scheme.” He countered this by emphasizing the underlying value of blockchain technology. “There’s a lot of people out there that don’t understand the basic methodology behind Bitcoin,” he argued. “And it’s really that blockchain technology, which is where the value is medium term.”
Also Read: Can Bitcoin Crack $200,000? Standard Chartered Predicts $100 Billion ETF Flood
A Look at the Future – Blockchain Revolution
Kendrick delved further, exploring the transformative potential of blockchain technology beyond just financial services. “Bitcoin is the first mover,” he stated. “It’s the largest asset at the moment, but that opens up the Ethereum and other use cases. Over the next five to 10 years, you can easily see a lot of traditional finance go on chain.”
Recent market volatility, including a $260 million Bitcoin leverage liquidation event, was also discussed. Kendrick interprets this as a necessary correction that could pave the way for a stronger post-halving rally. “The market is now looking much more square going into the halving, in terms of leverage,” he explained.
Confidence in Bitcoin’s Future
Standard Chartered’s outlook for Bitcoin remains positive. Kendrick predicts not only a recovery but also a significant price increase fueled by ETF inflows and technological advancements. He even envisions Bitcoin reaching a value of $200,000 by the end of 2025, exceeding his initial 2024 target.
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