In a recent interview on the Bankless YouTube channel, Binance CEO Richard Teng shared his latest cryptocurrency predictions, focusing on the potential growth of Bitcoin (BTC) and the impact of exchange-traded funds (ETFs) on the market.
With Bitcoin currently trading in the mid-$60,000 range, Teng believes that the leading cryptocurrency will surpass the $80,000 mark before the end of 2024. However, his outlook for 2025 is even more bullish, as he expects improving macroeconomic conditions to create a more favorable environment for the crypto industry as a whole.
Teng anticipates that interest rates will likely be reduced towards the end of this year, setting the stage for a much better macroeconomic and interest rate environment in 2025. He believes that these factors will contribute to a significant boost in crypto prices, making 2025 an even better year for the industry compared to 2024.
One of the key drivers behind Teng’s optimistic predictions is the U.S. SEC’s approval of spot Bitcoin ETFs in January 2024 and the expected approval of spot ETFs for Ethereum (ETH). The Binance CEO admits that he did not anticipate spot ETF approvals to happen so quickly, initially forecasting their arrival towards the end of 2024 or even 2025.
The swift approval of these investment vehicles has prompted Teng to revise his Bitcoin price prediction upwards. While his base prediction at the end of 2023 was $80,000 for Bitcoin by the end of 2024, he now believes that the price will be much higher due to the strong and robust inflows from institutions following the launch of spot Bitcoin ETFs:
“So my base prediction [at the] end of 2023 was $80,000 [for Bitcoin at the end of 2024]… But what I didn’t predict was the strong robust inflows from the institutions after the launch of [the Bitcoin] ETF. I didn’t expect the ETF to be approved so quickly, so early on in the year. My prediction for ETF approval was possibly towards the end of 2024 even 2025. I have changed my [Bitcoin] prediction because of that. My price for end of this year is much higher than $80,000. I’m not going to give you the price, but it’s much higher than my base price from the end of last year, and I think next year will be a much better year compared to this year. That’s my view.“
Teng notes that since the beginning of the year, approximately $15 billion has flowed into spot Bitcoin ETFs, demonstrating the significant institutional demand for this investment product. He expects this trend to continue, bringing new liquidity and user pools to the cryptocurrency market.
To support his bullish outlook, Teng cites the predictions of other analysts, such as those from Standard Chartered, who suggest that Bitcoin could reach $200,000 or even $250,000 by next year if a price squeeze occurs. These projections indicate that there is still considerable room for growth in the value of both Bitcoin and Ethereum.
Teng emphasizes the importance of spot ETF approvals in driving the adoption and growth of the cryptocurrency market. By providing institutional investors with a regulated and familiar investment vehicle, these ETFs are expected to bridge the gap between traditional finance and the crypto space, bringing in new liquidity and user pools.
The Binance CEO believes that the approval of spot ETFs for both Bitcoin and Ethereum will be highly beneficial for the crypto community, as it will continue to drive robust institutional demand. As more institutional money flows into the market, Teng expects the prices of Bitcoin, Ethereum, and altcoins to rise significantly in the coming years.
Featured Image via Pixabay
