Geoff Kendrick, the Head of FX Research at Standard Chartered, has provided a bullish forecast for Bitcoin, indicating that the approval of Bitcoin spot exchange-traded funds (ETFs) could drive the leading cryptocurrency to new heights. Kendrick’s Monday note expressed confidence that such regulatory approval could trigger a significant surge, with Bitcoin’s value potentially increasing by over 300% by the end of the upcoming year.
Wall Street is paying close attention to this prediction, particularly as the financial industry eagerly awaits the Securities and Exchange Commission’s decision, expected by Wednesday. The looming deadline adds a sense of anticipation, marking a pivotal moment for the potential integration of BTC ETFs into traditional financial markets. Kendrick’s projection of an end-2025 BTC price nearing $200,000 is contingent upon anticipated ETF inflows materializing. This scenario depends on an additional 437,000 to 1.32 million Bitcoins held in spot US ETFs by the end of 2024, translating to potential inflows of $50-$100 billion in 2024 alone.
This would represent a remarkable 4.3x increase from its current value, a prospect that has some investors excited about the possibility of extraordinary returns. However, Standard Chartered executives have issued a word of caution, comparing the projected trajectory to the historical performance of gold ETPs. They noted that gold ETPs took seven to eight years to reach a similar valuation multiplier after their 2004 launch. This stark contrast in timelines raises questions about the feasibility of Kendrick’s prediction and highlights the inherent uncertainty surrounding long-term cryptocurrency forecasts.
Despite historical data suggesting potential Bitcoin price gains similar to those following US spot ETF approval, Standard Chartered expects a significantly accelerated timeline of 1-2 years. This rapid appreciation is attributed to their belief in a more agile and rapidly developing BTC ETF market compared to previous iterations. Kendrick stated, “We use this 4.3x increase as basis for Bitcoin, but we expect BTC gains to occur during a short one- to two-year period because we expect the BTC ETF market to mature more quickly.”
At present, Bitcoin’s trading price is $46,650, with a market capitalization of $860 billion. As Bitcoin’s price has steadily grown, analysts have been making optimistic projections for the king coin. An analyst who developed the Stock-to-Flow (S2F) model has predicted that Bitcoin might exceed $100,000 in 2024 and then rise to $532,000 in 2025. This forecast was made during a time when Bitcoin ETFs were a hot topic in the market. If ETFs are approved, investors could anticipate a surge in BTC’s price, potentially reaching unprecedented levels.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Geoff Kendrick |
| Companies | Shutterstock, Securities and Exchange Commission, Standard Chartered, TradingView.com |
| Currencies | US Dollar, Bitcoin |
| Securities | None |
