StanChart executives predict Bitcoin will reach $200,000 by the end of 2025 as demand continues to outpace supply.
Geoffrey Kendrick, head of cryptocurrency research at Standard Chartered, predicted that Bitcoin will continue to rise over the next 24 months, reaching a price of $200,000 per coin by the end of 2025.
Kendrick made the statement in a CNBC interview on February 29th. He said both macro and fundamental indicators point to a continued rally in the flagship cryptocurrency.
Standard Chartered previously made a similar prediction before the Bitcoin exchange-traded fund (ETF) was approved. At the time, the lender wrote that approval was critical for Bitcoin to rise to $200,000.
Reached all-time high before halving
Kendrick said growing demand for Bitcoin would likely push the flagship cryptocurrency to new all-time highs before the halving, which is less than two months away. He also predicted that the price of Bitcoin would reach $100,000 by the end of this year as halving further reduces supply.
This halving event, which halves the reward for mining new Bitcoins, is expected to lower the Bitcoin inflation rate from about 1.7% to about 0.8%. The mining reward per block will be reduced from the current 6.25 to 3.125.
This will reduce the daily supply of Bitcoin from 900 BTC to 450 BTC. Historically, a 50% decline in new supply has been the primary catalyst for price increases in previous cycles.
Another notable driver behind the bullish outlook is significant inflows into spot Bitcoin ETFs launched in early 2024.
ETFs driving demand
Kendrick highlighted that the new Bitcoin ETF saw significant inflows of $14 billion, with net inflows of around $6 billion excluding Grayscale’s outflows. This equates to approximately 110,000 new Bitcoins being held, which significantly boosts the market.
The Newborn Nine ETF is absorbing Bitcoin at an average rate of 10,000 BTC per day, while only 900 BTC is produced each day. This means that demand is already 10 times higher than supply.
Kendrick also pointed to broader market conditions and potential changes in Federal Reserve policy as backdrops supporting Bitcoin’s rise. With the Federal Reserve expected to cut interest rates by mid-year, easing monetary policy could benefit risk assets, including cryptocurrencies.
He also said that the overall growth narrative, fueled by bullish stock market trends combined with ETF inflows and the direct impact of the halving event, makes a compelling case for an upward trajectory for Bitcoin.