Standard Chartered Bank, a British multinational bank, predicts that Bitcoin will surge significantly, with the price potentially skyrocketing to $200,000 in the second half of this year.
Historically, Bitcoin has experienced a sharp decline in the months following the quadrennial halving event, which slows the growth rate of supply for the top cryptocurrency. Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, stated that this time, the increase in ETF inflows and the rise in corporate bond purchases are expected to break this pattern.
The Bitcoin halving cycle has ended.
Geoff Kendrick of Standard Chartered Bank told clients in a report on Wednesday that the four-year Bitcoin halving cycle "has ended."
While the two halving cycles in 2016 and 2020 led to a decline in Bitcoin prices within about 18 months after halving, the impact of the latest Bitcoin halving in April 2024 may be different. Although he believes that this cryptocurrency may break the historical trend after halving, he warns that the future is not all smooth sailing.
Kendrick stated, "Due to concerns that this pattern may repeat, we believe that prices may fluctuate at the end of the third quarter and the beginning of the fourth quarter. However, we expect that with the continued strong purchasing support from ETFs and Bitcoin treasury bonds, prices will resume an upward trend."
The analyst ultimately expects Bitcoin to reach $135,000 by September 30 and to double the target of $200,000 by December 31.
Standard Chartered Bank: Bitcoin is expected to achieve the "best performance in history" in the second half of the year.
Spot Exchange-Traded Funds (ETFs) and treasury bond buyers purchased a total of 245,000 BTC in the second quarter. Kendrick predicts that as allocations continue and more listed companies emulate the BTC acquisition strategy of Strategy, this number will be surpassed in the coming months.
The banker observed that in all previous halving cycles, the demand from BTC funding companies and spot ETFs was missing.
Therefore, he believes that Bitcoin is likely to set a new historical high of $111,814 established on May 22. "Bitcoin will reach a historical high in the second half of the year," Kendrick stated.
Michael Saylor's strategy promoted Bitcoin financial strategies and shifted the focus from software development to Bitcoin financial strategies at the end of 2020. The Nasdaq-listed company has been purchasing Bitcoin (BTC) almost weekly over the past year and currently holds 597,325 Bitcoins, valued at approximately $65 billion at current market prices.
Reports also mentioned that Kendrick referred to macro positive factors, including President Donald Trump possibly announcing the successor to Federal Reserve Chairman Jerome Powell ahead of time, and the passing of the landmark GENIUS stablecoin legislation, which could drive Bitcoin further up.
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