- Standard Chartered said Bitcoin could still reach $100,000 by the end of 2024 after this week’s rally.
- The token rose 11.7% to a new high of the year, reaching more than $47,500.
- This is because spot ETF flows have slowed significantly and should no longer be a headwind.
Bitcoin soared to a 2024 high after failing to meet market expectations in January.
The token rose 11.7% throughout the week, reaching a price of around $47,565. Standard Chartered’s Jeff Kendrick said on Friday that the change in fortunes meant his $100,000 share price target by the end of the year was achievable.
The head of FX research has long been bullish on cryptocurrencies, predicting prices to reach $200,000 by the end of 2025. Part of his prediction is based on optimism about the new Bitcoin Spot ETF, which was approved by the Securities and Exchange Commission on January 10th.
At the time, Kendrick argued that these new investment vehicles should drive large-scale inflows into the crypto sector and provide an outlet for more traditional financial players to join the space.
Instead, Bitcoin fell sharply after the spot ETF hit the market, with the cryptocurrency’s price bottoming out at around $39,450 by the end of January.
Most people point to the large outflows of Grayscale ETFs as a contributing factor to Bitcoin’s mixed performance. The investment vehicle was converted from an existing Bitcoin trust fund, meaning it already held billions worth of Bitcoin before competing with 10 other ETFs. This led to a surge in outflows, with the GBTC fund losing $2.5 billion in its worst week, JPMorgan reported.
However, the pace has slowed significantly, Kendrick suggested, which could be why Bitcoin is surging.
“I believe it is simply due to changes in flow dynamics in new ETFs in the US,” he wrote in an email Friday in response to Bitcoin’s rally. He added: “While GBTC selling appears to have slowed (averaging USD 59 million per day this week), inflows to other ETFs remain strong (averaging USD 244 million per day this week).” added.
This is enough to meet Kendrick’s year-end price forecast. He previously outlined that between 437,000 and 1.32 million new Bitcoins should ultimately be held in spot ETFs, which could potentially allow prices of $200,000. Once outflows completely stop, net inflows could reach $50 billion to $100 billion.