Standard Chartered CEO Geoffrey Kendrick recently caught the attention of the financial world with his graphic declaration that bitcoin could be worth $200,000 by the end of 2025.

This time, given the growing interest in cryptocurrencies and the boost in institutional investment, he remains bullish about several factors that he believes will drive demand for bitcoin, regardless of external economic conditions or the upcoming US presidential election.

Factors behind prediction

Kendrick says a number of factors could propel BTC’s price to unprecedented heights. The first is institutional investors’ acceptance of Bitcoin as a major asset class. Millions of dollars of capital have already been poured into recently launched Bitcoin ETFs.

In fact, over $14 billion has flowed into Bitcoin ETFs since the products debuted. This will of course not only fill the cryptocurrency market with liquidity, but also shed more delicate on its credibility as an alternative investment.

“#Bitcoin “Reach $200k in THIS cycle, regardless of the election” – Bank Director

Live at 4pm ET: https://t.co/JhOlAKIMjH

— Cryptocurrency News Alerts 🔥🎙 (@CryptoNewsYes) September 21, 2024

Additionally, Kendrick highlights the potential impact of macroeconomic trends. He suggests that interest rate cuts by the Federal Reserve in 2024 could create a more favorable environment for risk assets like cryptocurrencies.

Lower interest rates typically lead to more borrowing and spending, which can boost demand for assets perceived as stores of value, such as Bitcoin.

Bitcoin Halving

While Kendrick’s prediction has nothing to do with politics, the fact that bitcoin halved in value in April 2024 was another key factor in the animated elements of the market.

It is obvious that from the reduction of the mining reward from 6.25 BTC to 3.125 BTC it can be clearly concluded that fewer recent coins will enter the system in the future.

BTCUSD trading at $62,792 on the daily chart: TradingView.com

Throughout history, such halves caused an boost in prices due to the associated reduction in supply and simultaneous ongoing or increasing demand.

The recent halving could soon lead to gigantic price moves. In the past, halvings have often caused gigantic price spikes, like in 2020, when Bitcoin rose from around $8,600 to over $60,000 in a year.

While past performance is no guarantee of future results, most traders are eagerly following the events surrounding this halving to see what impact it may have on the price of BTC.

Market sentiment and future prospects

The underlying sentiment surrounding Bitcoin remains consistently positive. Many in the investment space expect more individuals and institutions to seek out Bitcoin as an investment vehicle to hedge against inflation and economic instability. Kendrick’s forecast provides such an bullish outlook on what could become even more popular crypto-alpha assets.

Featured image from 360 Mozambique, chart from TradingView