Standard Chartered Predicts Bitcoin to Reach $200,000 by Year End

Standard Chartered, a prominent multinational bank, has projected significant gains for Bitcoin, anticipating a potential surge to $200,000 by the end of this year. This optimistic outlook is based on several key factors that are expected to drive Bitcoin's value higher.

Historically, Bitcoin has experienced a slump in the months following the halving event, which occurs every four years and reduces the growth rate of the cryptocurrency's supply. However, this time around, the scenario is expected to be different. Geoff Kendrick, the global head of digital assets research at Standard Chartered, believes that growing inflows into exchange-traded funds (ETFs) and increased corporate treasury buying will disrupt the traditional post-halving pattern.

Kendrick stated that the four-year Bitcoin halving cycle is no longer relevant. While previous halving events in 2016 and 2020 led to Bitcoin prices declining roughly 18 months after the halving, the latest halving in April 2024 is expected to have a different impact. Kendrick acknowledges that the price of Bitcoin may experience volatility in late Q3 and early Q4 due to concerns about repeating the historical pattern. However, he anticipates that prices will resume their upward trend, supported by continued strong ETF and Bitcoin treasury buying.

Kendrick's forecast includes Bitcoin reaching $135,000 by September 30 and doubling down on his $200,000 target for December 31. This bullish outlook is supported by the significant demand for Bitcoin from both ETFs and corporate treasuries. During the second quarter, spot ETFs and treasury buyers acquired a total of 245,000 BTC. Kendrick predicts that this figure will be surpassed in the coming months as more public companies adopt Bitcoin acquisition strategies similar to those of Strategy.

Kendrick noted that the demand for Bitcoin from corporate treasuries and spot ETFs was absent in all prior halving cycles. This new dynamic is expected to drive Bitcoin to set a record above its previous all-time high of $111,814, which was reached on May 22. Kendrick stated, "Bitcoin to print new all-time highs in H2."

Michael Saylor’s Strategy is credited with popularizing the Bitcoin treasury strategy. The Nasdaq-listed firm has been acquiring BTC almost every week over the last year and now owns 597,325 Bitcoin, valued at around $65 billion based on current market prices. Kendrick also cited macro tailwinds, including a possible early announcement by President Donald Trump naming a successor to Federal Reserve Chair Jerome Powell and the passage of the landmark GENIUS stablecoin legislation, as other catalysts that could fuel further upside for Bitcoin.