Jeffrey Kendrick, head of crypto analysis at Normal Chartered, predicts that Bitcoin will proceed to rise over the following 24 months, reaching $200,000 per coin by the top of 2025.

Kendrick made this remark in an interview with CNBC on February twenty ninth. He mentioned macro and basic indicators all level to a sustained rally within the flagship cryptocurrency.

Normal Chartered beforehand made an analogous prediction earlier than the spot Bitcoin exchange-traded fund (ETF) was accepted. On the time, the lender wrote that approval was important for Bitcoin to rise to $200,000.

Up to date the very best worth earlier than the halving

Kendrick mentioned rising demand for Bitcoin will possible push the flagship cryptocurrency to new all-time highs earlier than the halving, which is lower than two months away. He additionally predicted that Bitcoin will attain $100,000 by the top of this 12 months because the halving additional reduces provide.

The halving occasion, which cuts the reward for mining new Bitcoin in half, is anticipated to scale back Bitcoin inflation from about 1.7% to about 0.8%. The mining reward per block will drop from the present 6.25 to three.125.

This can scale back the every day provide of Bitcoin from 900 BTC to 450 BTC. Traditionally, a 50% reduce in new provide has been the principle catalyst for worth will increase in earlier cycles.

One other notable issue behind the bullish outlook is the heavy inflows into the Spot Bitcoin ETF launched in early 2024.

ETFs drive demand

Kendrick highlighted that the brand new Bitcoin ETF noticed vital inflows of $14 billion, with internet inflows of roughly $6 billion excluding Grayscale outflows. This equates to roughly 110,000 new Bitcoins being held, giving a major enhance to the market.

The New child 9 ETF is absorbing Bitcoin at a mean price of 10,000 BTC per day, however solely produces 900 BTC per day. Because of this demand is already 10 occasions higher than provide.

Kendrick additionally pointed to broader market circumstances and potential modifications in Federal Reserve coverage as elements behind Bitcoin's rise. He expects the Fed to chop rates of interest by mid-year, and straightforward financial coverage may favor threat property, together with cryptocurrencies.

Moreover, he believes that the general development story supported by optimistic traits within the inventory market, mixed with the direct impression of ETF inflows and the halving occasion, creates a compelling case for Bitcoin's upward trajectory. He mentioned there was.