Standard Chartered head of crypto research Geoffrey Kendrick predicts that Bitcoin will continue to rise over the next 24 months, culminating in a price of $200,000 per coin by the end of 2025.
Kendrick made the statement during a CNBC interview on February 29. He said macro and fundamental indicators all point to a continued rally for the flagship crypto.
Standard Chartered has previously made similar predictions before the Bitcoin Exchange Traded Funds (ETFs) were approved. At the time, the lender wrote that their approval was crucial for Bitcoin to rise to $200,000.
New all-time high before halving
Kendrick said increased demand for Bitcoin will likely see the flagship crypto hit a new all-time high before the halving, which is less than two months away. He also predicted that Bitcoin will reach $100,000 by the end of this year as the halving will reduce supply even further.
The halving event, which halves the reward for mining new bitcoins, is expected to reduce Bitcoin inflation from about 1.7% to about 0.8%. Mining rewards per block will drop from the current 6.25 to 3.125.
This will cause the daily supply of Bitcoin to drop from 900 BTC to 450 BTC. Historically, the 50% reduction in new supply has been a major catalyst for price increases in previous cycles.
Another notable driver behind the bullish outlook is the substantial inflows into spot Bitcoin ETFs launched in early 2024.
ETFs drive demand
Kendrick highlighted that new Bitcoin ETFs have seen significant inflows of $14 billion, with net inflows, excluding Grayscale’s outflows, of approximately $6 billion. This equates to approximately 110,000 new Bitcoins in possession, significantly boosting the market.
The Newborn Nine ETFs are absorbing Bitcoin at an average rate of 10,000 BTC per day, while only producing 900 BTC daily – meaning demand is already 10x higher than supply.
Kendrick also pointed to broader market conditions and possible shifts in Federal Reserve policy as a supportive backdrop for Bitcoin’s rise. With the Fed expecting to cut rates by mid-year, dovish monetary policy could favor risky assets, including cryptocurrencies.
Furthermore, he said the overall growth story, supported by optimistic stock market trends, combined with the direct impact of ETF inflows and the halving, makes a compelling case for Bitcoin’s upward trajectory.