Munzir HakimiTable of Contents
Bright Bitcoin Future
Global bank standard Chartered is optimistic about Bitcoin’s trajectory for the remainder of the year. They anticipate meaningful price increases driven by corporate treasury purchases and robust exchange-traded fund (ETF) inflows. According too their digital asset research head, Geoff Kendrick, Bitcoin could reach new heights of $135,000 by the end of Q3 and perhaps exceed $200,000 by year-end.
Kendrick attributes this bullish outlook to a shift in market dynamics, suggesting that Bitcoin has moved past previous patterns where prices typically fell 18 months after a halving cycle. This time around, strong investor interest may alter expected trends.
Halving Cycle Insights
In his analysis, Kendrick examined the implications of the upcoming Bitcoin halving, an event that historically influences price movements. While past halvings led to declines approximately 18 months later, he believes this cycle will differ due to new factors like increased ETF activity and corporate investments.
- The next halving is set for April 2024.
- Previous halvings occurred in 2016 and 2020.
Kendrick emphasizes that these new drivers were absent during earlier cycles but are now pivotal in supporting upward price momentum.
ETF Trends Impacting Prices
Despite recent fluctuations in ETF flows-where US spot Bitcoin ETFs experienced outflows after a streak of inflows-Kendrick remains confident about future growth. He noted that total flows from both ETFs and corporate treasuries reached 245,000 BTC in Q2 alone.
- Recent data showed $342.3 million in outflows from US spot Bitcoin ETFs.
- This marked their first outflow since June 6th but still reflects strong overall interest.
Kendrick expects these levels will be surpassed as we move into Q3 and Q4.
Final Thoughts Ahead
As Standard Chartered maintains its positive outlook on Bitcoin’s future value amidst changing market conditions, investors should stay informed about ongoing developments related to ETF activities and corporate buying strategies which could considerably influence prices moving forward.
Reference
#####
