Following the historic surge of Bitcoin to the $100,000 mark, banking giant Standard Chartered is predicting an even brighter future for the flagship cryptocurrency. The financial institution is forecasting that Bitcoin could hit a whopping $200,000 by next year, positioning the digital coin to experience significant gains.
The optimism over Bitcoin’s potential increase comes from Geoff Kendrick, the Global Head of Digital Assets Research at Standard Chartered. Kendrick has previously made accurate forecasts about Bitcoin’s growth, including its climb to the six-digit landmark. He foresees strong uptake from US retirement funds, global sovereign wealth funds, or a potential US strategic reserve fund as catalysts for the imminent rally.
Institutional investors’ inflows, buoyed by regulatory changes and falling volatility, initially piqued Kendrick’s belief in Bitcoin achieving a $100,000 value by 2023. The ongoing development and success of MicroStrategy and Bitcoin exchange-traded funds signify this trend could continue until 2025.
Future institutional demand is likewise anticipated to receive a boost with President-elect Trump’s crypto-friendly policies and his trailblazing ideas, such as a national Bitcoin stockpile. Options trading on Bitcoin ETFs’ emergence is projected to increase demand particularly from pension funds and retirement accounts, adding another layer of potential growth.
Kendrick also underlined that even a small percentage of the total $40 trillion US retirement and pension funds flowing into Bitcoin could significantly boost its value. MicroStrategy’s rigorous buying activity of Bitcoin, inspiring other corporations to follow suit, has and will likely further contribute to the cryptocurrency’s growth.