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Geoff Kendrick, the Head of FX Research at Standard Chartered, has provided a bullish outlook on Bitcoin, suggesting that the approval of Bitcoin spot exchange-traded funds (ETFs) has the potential to propel the main cryptocurrency to unprecedented heights.
In a observe launched on Monday, Kendrick expressed optimism that such regulatory approval might lead to a exceptional surge, with Bitcoin’s worth doubtlessly skyrocketing by over 300% by the conclusion of the approaching yr.
Bitcoin ETF Decision: Wall Street Awaits
This forecast has captured the eye of Wall Street, particularly because the monetary business eagerly awaits the Securities and Exchange Commission’s determination, anticipated by Wednesday.
The impending deadline provides an air of anticipation, marking a vital second for the potential integration of BTC ETFs into conventional monetary markets.
Conditional upon anticipated ETF inflows materializing, Kendrick tasks an end-2025 BTC worth nearing $200,000. This situation hinges on 437,000 to 1.32 million extra Bitcoins held in spot US ETFs by year-end 2024, translating to potential inflows of $50-$100 billion in 2024 alone.
Standard Chartered posting some moon math! $200,000 coming pic.twitter.com/IQueMhjgiP
— Lark Davis (@TheCryptoLark) January 9, 2024
This represents a staggering 4.3x enhance from its present worth, leaving some buyers salivating on the prospect of extraordinary returns. However, a observe of warning comes from Standard Chartered executives, who in contrast the projected trajectory to the historic efficiency of gold ETPs.
These, they famous, took seven to eight years to succeed in an analogous valuation multiplier after their launch in 2004. The stark distinction in timelines raises questions concerning the feasibility of Kendrick’s prediction and underscores the inherent uncertainty surrounding long-term cryptocurrency forecasts.
BTCUSD at the moment buying and selling at $46,643 on the each day chart: TradingView.com
Standard Chartered Expects Swift Crypto Surge
While historic knowledge suggests potential Bitcoin worth beneficial properties just like these following US spot ETF approval, Standard Chartered anticipates a considerably accelerated timeline of 1-2 years. This fast appreciation is attributed to their conviction of a extra agile and quickly growing BTC ETF market in comparison with earlier iterations.
“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,” Kendrick mentioned.
Currently, Bitcoin’s trading price stands at $46,650, accompanied by a market capitalization of $860 billion.
Meanwhile, as Bitcoin’s worth steadily grew, analysts have been making optimistic projections for the king coin.
In 2015, once I purchased my first btc at $400, individuals mentioned bitcoin was lifeless.
In 2019, when btc was $4000, I wrote the S2F article, calling for $55k btc. People mentioned I used to be loopy.
Today, btc is $40k, and S2F mannequin predicts $532k after 2024 halving. People say it’s unattainable.
— PlanB (@100trillionUSD) January 7, 2024
An analyst who developed the Stock-to-Flow (S2F) mannequin has made a noteworthy prediction that Bitcoin may exceed $100,000 in 2024 after which rise to $532,000 in 2025.
The forecast was generated throughout a interval when Bitcoin ETFs had been a broadly debated and widespread topic available in the market.
If the approval of ETFs is granted, buyers may anticipate a surge in BTC’s worth, doubtlessly reaching unprecedented ranges.
Featured picture from Shutterstock
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