Bitcoin BTC/USD has made a remarkable recovery this week, and according to a Standard Chartered analyst, this could lead to a $100,000 price point by the end of 2024.
What Happened: After a disappointing January, Bitcoin has seen a significant surge, reaching its highest level in 2024. The cryptocurrency’s price rose by 11.7% over the week, hitting approximately $47,565 on Friday, according to data from Benzinga Pro.
Geoff Kendrick, head of FX Research at Standard Chartered, has long been optimistic about Bitcoin’s future. He believes that the cryptocurrency could reach $100,000 by the end of the year and even $200,000 by the end of 2025, reported Business Insider.
Kendrick’s forecast is based on the approval of Bitcoin spot ETFs by the Securities and Exchange Commission or SEC on Jan. 10. He predicts that these new investment vehicles will attract significant inflows into the crypto sector, potentially drawing in more traditional financial players.
Despite a sharp decline after the launch of the spot ETFs, Bitcoin’s price has now rebounded. Kendrick attributes this resurgence to a slowdown in outflows from the Grayscale ETF and a continued strong inflow into other ETFs.
“I think it is simply down to the changing flow dynamics in the new US ETFs.” he said.
“GBTC selling seems to have slowed (to an average of USD59mn a day this week) while flows into the other ETFs continue to be strong (average USD244mn a day this week).”
Why It Matters: Last year in November also, Standard Chartered spoke about this outlook for Bitcoin’s price to reach $100,000 by the end of 2024. Kendrick stated that “everything is working as expected,” and it seems that his predictions are indeed coming to fruition.
Moreover, this surge also supports the predictions of other industry experts. Last month, CoinShare’s chief strategy officer, Meltem Demirors, predicted that Bitcoin could hit the $100,000 mark based on potential inflows of up to $100 billion post the spot Bitcoin ETF approval.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image: Walerssk from Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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