According to Geoff Kendrick, an analyst and the head of digital assets research at Standard Chartered Bank, it’s expected that the price of bitcoin (BTC) may increase after the halving event since fewer leveraged bets are currently present in the market.
During a recent conversation with BNN Bloomberg, Kendrick expressed his belief that the present market situation, characterized by reduced leverage, could lead to an increase in Bitcoin’s value and potentially reach Standard Chartered’s projected year-end price of $150,000.
A Lower Leveraged Market
The week before Bitcoin’s halving event concluded with a significant market sell-off in cryptocurrencies. Over $10 million worth of both short and long positions were liquidated as Middle Eastern tensions intensified. News of Iranian attacks against Israel caused panic selling, resulting in a steep drop of nearly $10,000 for Bitcoin and causing widespread damage.
In simple terms, the price of Bitcoin dropped significantly within a day, going from $71,000 to $65,000 and then to $61,000. Approximately 300,000 traders experienced losses, resulting in over $1.8 billion in liquidations. The market volatility during that weekend led to the elimination of around $1.8 billion worth of Bitcoin positions, making April 13 a record-breaking day for daily liquidations since October 2023.
Kendrick explained that getting rid of heavily leveraged positions has created a smooth road for cryptocurrencies to climb higher. Given the market’s significant increase in leverage leading up to the halving event, there is potential for a strong comeback and record-breaking growth.
ETF Inflows to Drive BTC Uptrend
In addition to less risky investments in the market, Kendrick pointed out increasing investments in Bitcoin spot ETFs and optimistic developments between Iran and Israel as possible triggers for an upward trend in Bitcoin’s price.
The Standard Chartered analyst anticipates that Bitcoin ETF investments will pick up again, bringing in between $50 and $100 billion over the next 18 to 24 months as the market develops. Comparing the Bitcoin ETF sector to gold, Kendrick projects that it could expand by a factor of four or five as more funds flow in, potentially pushing the price of Bitcoin up to $150,000 by the end of 2024 and beyond $200,000 by 2025.
During this time, Standard Chartered made an estimation that the price of Bitcoin could potentially reach $250,000 by the year 2025, assuming Bitcoin ETF investments amount to around $75 billion.
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2024-04-25 07:30