Standard Chartered’s Geoffrey Kendrick Predicts Bitcoin to Reach $200,000 by 2025
Geoffrey Kendrick of Standard Chartered forecasts Bitcoin will reach $200,000 in 2025, potentially rising to $500,000 by the end of President Trump’s term. He attributes this optimism to political changes, regulatory shifts, and the necessity for greater institutional participation, despite recent market volatility and investor losses.
In a recent interview on CNBC’s Street Signs, Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered, discussed Bitcoin’s price volatility and presented an optimistic outlook for the cryptocurrency. Kendrick anticipates Bitcoin could soar to $200,000 by the end of 2025 and potentially reach up to $500,000 prior to the conclusion of President Trump’s term. He believes political developments will create a favorable environment for cryptocurrencies, particularly Bitcoin.
Kendrick explained that investor sentiment has been affected by political changes, noting that “the Trump Administration will be positive medium term”. He highlighted a shift in regulatory stance post-inauguration, particularly referring to the removal of SAB 121, which had previously constrained financial institutions. Furthermore, he mentioned the replacement of expected strategic Bitcoin reserves with a more stable stockpiling approach.
Despite this optimism, market fluctuations may arise from uncertainties such as trade tensions and geopolitical conflicts. Kendrick remarked, “Initiatives in the last couple of weeks have been very confusing for risk assets… tariffs on and off.” He also pointed to incidents within the cryptocurrency market, specifically hacks and scams, which have contributed to Bitcoin’s recent downturn.
When questioned about Bitcoin’s status as a diversifier, Kendrick presented a balanced perspective. He stated, “…Medium-term, I think the diversification story is reasonable… The use case for Bitcoin in particular is to diversify against risks around traditional financial markets.” He acknowledged recent significant outflows from spot ETFs, indicating volatility within the crypto market.
Kendrick highlighted that investors who acquired Bitcoin post-election are currently facing considerable losses, summing up to around $2 billion. This situation, combined with active retail involvement, has intensified market volatility. He stated that it can be challenging for investors to endure such downturns, often resulting in panic selling during significant dips.
Reiterating the need for increased institutional participation, Kendrick asserted that advancements in custody solutions and improved regulations might stabilize the market. He expressed hope for greater regulatory clarity in the U.S., which could bolster Bitcoin’s price potential, predicting an increase to $200,000 this year.
Kendrick further emphasized the importance of regulatory frameworks surrounding stablecoin rules and KYC compliance to attract institutional investors. He pointed out that large entities, such as public pension and sovereign wealth funds, have yet to fully engage with Bitcoin. As a notable example, he referenced the Abu Dhabi Sovereign Wealth Fund’s investment in the BlackRock ETF, suggesting a growing trend of institutional participation in the cryptocurrency market.
At present, Bitcoin is trading at $81,428, which reflects ongoing volatility yet aligns with Kendrick’s optimistic long-term forecast. He concludes that the involvement of public and sovereign entities could significantly influence Bitcoin’s trajectory moving forward.
In summary, Geoffrey Kendrick from Standard Chartered presents a bullish outlook for Bitcoin, predicting a rise to $200,000 in 2025 and potentially $500,000 before Trump leaves office. He attributes positive sentiment to political developments and underscores the need for enhanced institutional engagement and regulatory clarity. Despite recent market volatility, he remains optimistic about Bitcoin’s long-term role as a diversifier for traditional investments, forecasting increased institutional inflows in the near future.
Original Source: bitcoinist.com
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