Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, predicts Bitcoin will hit $200,000 by next year, independent of the results of the upcoming U.S. presidential election in November.
In a recent interview, Kendrick attributed this anticipated price surge to three key factors. He cited policy changes, inflationary pressures, and increased inflows into spot Bitcoin exchange-traded funds (ETFs) as primary drivers for the cryptocurrency’s price escalation to unprecedented levels.
Key Factors Behind Bitcoin’s Projected Price Surge
One significant policy change Kendrick mentioned is the potential revocation of the Staff Accounting Bulletin (SAB) 121. Introduced in March 2022, this policy requires banks to disclose the cryptocurrency assets they hold in custody on their balance sheets. The regulation also limits the volume of digital assets banks can hold, deterring many financial institutions from deeper crypto adoption. While the U.S. House and Senate have both voted to scrap this policy, President Biden has vetoed the repeal, keeping the regulation in place.
However, Kendrick expressed optimism that this policy would be overturned under the next administration. He noted that whether Donald Trump or Kamala Harris wins the 2024 election, either is likely to repeal the law, which would support further institutional adoption of digital assets.
Renewed Inflows Into US Bitcoin ETFs Expected by Q4
Kendrick also predicted a resurgence of inflows into U.S. Bitcoin spot ETFs, particularly by the fourth quarter of 2024. While ETF inflows have slowed since July, Kendrick believes they will regain momentum, driving Bitcoin’s price upward. Historically, strong inflows into spot ETFs have been a significant factor in Bitcoin reaching new highs, such as the $73,700 peak in March.
Additionally, Kendrick pointed to rising inflation expectations as another catalyst for Bitcoin’s growth. As investors seek alternatives to safeguard against inflation, Bitcoin is increasingly viewed as a store-of-value asset. This perception could spur further adoption and drive its price higher.
Bitcoin to Reach $125,000 if Trump Wins
While predicting a $200,000 valuation for Bitcoin in 2025, regardless of the election outcome, Kendrick noted that a victory by Donald Trump could push Bitcoin to $125,000 by the end of 2024. According to Kendrick, bullish sentiment surrounding Trump’s pro-crypto stance could serve as a significant driver of Bitcoin’s price. Trump, along with his two sons, has demonstrated strong support for digital assets, even launching a decentralized finance (DeFi) platform aimed at disrupting traditional financial systems.
Kendrick also speculated on potential regulatory shifts, specifically regarding Securities and Exchange Commission (SEC) Chair Gary Gensler. Trump has pledged to remove Gensler on his first day in office, a move Kendrick believes would usher in a new era of regulatory clarity for cryptocurrencies. This, in turn, would likely accelerate the approval of crypto-related ETFs and foster greater institutional involvement in the sector. Kendrick also anticipates the launch of Solana spot ETFs next, though this view is subject to debate within the crypto community, particularly among XRP supporters.
Conclusion
Kendrick’s predictions point to a significant surge in Bitcoin’s price, driven by a combination of policy changes, growing institutional adoption, and inflationary pressures. Whether driven by Trump’s pro-crypto stance or broader economic factors, Bitcoin appears poised for growth in the coming years.
Disclaimer: The information provided is for informational purposes only and should not be construed as financial advice. The views expressed are the opinions of the author and do not necessarily reflect the stance of this publication. Readers are encouraged to conduct their own research before making any investment decisions. The publication is not responsible for any financial losses.
