Bitcoin Price to Hit $200,000 by End of 2025 as Demand Continues to Outpace Supply: Standard Chartered Executive

Kendrick believes that multiple catalysts will drive demand for bitcoin to unprecedented levels, leading to a rally that will last for two years.

Kendrick made this observation in a Feb. 29 interview with CNBC. He said that both macro and fundamental indicators suggest that bitcoin will experience a sustained rally.Bitcoin Miner

Standard Chartered made a similar prediction before the Bitcoin Spot Exchange Traded Fund (ETF) was approved. At the time, the bank said that ETF approval would be crucial for bitcoin to rise to $200,000 USD.

Record Highs Before Halving

With the halving less than two months away, Kendrick said that increased demand for bitcoin will likely lead to the variety hitting new all-time highs before the halving. He also predicted that Bitcoin will reach $100,000 by the end of this year as the halving will further reduce supply.

The halving event, which cuts the reward for mining new bitcoins in half, is expected to reduce bitcoin’s inflation rate from about 1.7 percent to about 0.8 percent. The reward for mining each block will drop from the current 6.25 to 3.125.ETChash Miner

This would cause the daily supply of bitcoin to drop from 900 BTC to 450 BTC. Historically, a 50 percent reduction in new supply has been one of the key drivers of previous rounds of price increases.

For another notable driver behind this bullish outlook is the massive inflow of funds from the launch of a spot Bitcoin ETF in early 2024.

ETFs Drive Demand

Kendrick noted that the new bitcoin ETFs have already attracted about $14 billion in investment, with a net inflow of about $6 billion excluding outflows from Grayscale. This equates to roughly 110,000 new bitcoin holdings and has significantly fueled the market’s growth.

The nine new ETFs are soaking up bitcoin at an average rate of 10,000 BTC per day, and while only 900 BTC per day are being produced , this means that demand for bitcoin is already ten times the supply.

Kendrick also noted that broader market conditions and potential changes in Fed policy are also supporting Bitcoin’s rise. With the Fed expected to cut interest rates in the middle of the year, accommodative monetary policy could favor risky assets, including cryptocurrencies.

Additionally, he said that the overall growth story line, coupled with optimistic stock market trends, the direct impact of ETF inflows, and the halving event, creates a compelling case for Bitcoin’s upward trajectory.Kendrick believes that multiple catalysts will drive demand for Bitcoin to unprecedented levels, which will lead to a sustained two-year rally.

Kendrick made this observation in a Feb. 29 interview with CNBC. He said that both macro and fundamental indicators suggest that bitcoin will experience a sustained rally.

Standard Chartered made a similar prediction before the Bitcoin Spot Exchange Traded Fund (ETF) was approved. At the time, the bank said that ETF approval would be crucial for bitcoin to rise to $200,000 USD.

Record Highs Before Halving

With the halving less than two months away, Kendrick said that increased demand for bitcoin will likely lead to the variety hitting new all-time highs before the halving. He also predicted that Bitcoin will reach $100,000 by the end of this year as the halving will further reduce supply.

The halving event, which cuts the reward for mining new bitcoins in half, is expected to reduce bitcoin’s inflation rate from about 1.7 percent to about 0.8 percent. The reward for mining each block will drop from the current 6.25 to 3.125.

This would cause the daily supply of bitcoin to drop from 900 BTC to 450 BTC. Historically, a 50 percent reduction in new supply has been one of the key drivers of previous rounds of price increases.

For another notable driver behind this bullish outlook is the massive inflow of funds from the launch of a spot Bitcoin ETF in early 2024.

ETFs Drive Demand

Kendrick noted that the new bitcoin ETFs have already attracted about $14 billion in investment, with a net inflow of about $6 billion excluding outflows from Grayscale. This equates to roughly 110,000 new bitcoin holdings and has significantly fueled the market’s growth.

The nine new ETFs are soaking up bitcoin at an average rate of 10,000 BTC per day, and while only 900 BTC per day are being produced , this means that demand for bitcoin is already ten times the supply.

Kendrick also noted that broader market conditions and potential changes in Fed policy are also supporting Bitcoin’s rise. With the Fed expected to cut interest rates in the middle of the year, accommodative monetary policy could favor risky assets, including cryptocurrencies.

In addition, he said the overall growth story line, coupled with optimistic stock market trends, the direct impact of ETF inflows, and the halving event, create a compelling case for Bitcoin’s upward trajectory.