Bitcoin To Hit $200K By Year-End As ETF Inflows, Fed Rate Cuts Fuel Comeback: Standard Chartered
Bitcoin will surge to $200k by the end of the year after the recent $19 billion crypto liquidation cleared the path for another rally, Standard Chartered said.
Global head of digital assets research, Geoff Kendrick, said that the deleveraging from the $19 billion in liquidations in the Oct. 10 flash crash, combined with potential interest rate cuts from the Federal Reserve (Fed) and crypto ETF inflows, will serve as a launchpad for the surge in the BTC price.
Investors To Buy The Dip
Kendrick predicted that it may take several weeks for the market to recover from the strong pullback, but said that investors will soon see the dip as an opportunity to buy Bitcoin at a discount.
That could lead to BTC’s price rising to “well north of $150,000” even in a bear case by the end of the year, he said.
That bear case prediction is based on tariff risks related to the US-China trade war, which sparked the market’s recent downturn. Kendrick dismissed the tariff threats as just “noise.”
Bitcoin trades at $107,729.57 as of 6:56 a.m. EST after dropping a fraction of a percent in the past 24 hours, data from CoinMarketCap shows.
BTC To Soar On Continued ETF Inflows And Gold’s Rally
The next leg up will be powered “mostly on the back of ETF inflows,” Kendrick said.
The investment products ended their multi-day outflows streak yesterday, when $477.2 million entered their reserves collectively, according to data from Farside Investors.
US spot BTC ETF flows (Source: Farside Investors)
Leading the charge was BlackRock’s IBIT with $210.9 million in inflows. The second-biggest net daily inflows of $162.9 million was posted by ARK Invest’s ARKB product. In third place was Fidelity’s FBTC, with its $34.1 million inflows.
All of the other US spot BTC ETFs recorded inflows on the day, except for WisdomTree’s BTCW and Grayscale’s GBTC.
The inflows are likely to continue, according to Kendrick.
“There’s no reason for them to stop. The US government shutdown, Fed rate cuts. All that story is playing out already in gold,” he said.
His prediction comes after gold set multiple all-time highs (ATHs) this year amid the increasing uncertainty in the market and the commodity’s reputation as a safe-haven asset.
The Standard Chartered analyst believes that gold’s momentum could soon make its way into Bitcoin’s order books, especially if BTC’s status as “digital gold” re-emerges.
But Kendrick’s optimistic outlook is not echoed by crypto investors. The popular sentiment tracking tool, the Crypto Fear & Greed Index, has plunged 9 points in the past 24 hours to an “Extreme Fear” reading of 25.
The latest drop now places the index 20 points lower than the “Fear” reading seen a month ago.
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