Bitcoin Could Hit $120,000 by Q2 2024, Says Standard Chartered

Standard Chartered's Geoff Kendrick has predicted that Bitcoin could reach a new all-time high of around $120,000 in the second quarter of this year. This forecast is based on several factors, including a strategic shift by investors away from U.S. assets and towards Bitcoin. Kendrick reiterated his previous target of $200,000 by the end of 2025, indicating a strong bullish stance on the cryptocurrency's future performance.

At the time of the report, Bitcoin was trading around $95,300. Kendrick highlighted that the U.S. Treasury term premium, which has a close correlation with Bitcoin prices, is at a 12-year high. This premium reflects the additional yield that investors demand for holding long-term government bonds over short-term ones, and its elevation suggests a growing interest in alternative assets like Bitcoin.

Additionally, Kendrick noted strong accumulation by whales, indicating that large investors are increasingly buying and holding Bitcoin. This trend, combined with time-of-day analysis, suggests that American investors may be seeking non-U.S. assets, further driving demand for Bitcoin. The analysis also points to a recent shift in exchange-traded fund (ETF) flows, where there has been a "safe-haven reallocation from gold into BTC." This shift underscores Bitcoin's growing appeal as a hedge against financial system risks, potentially outperforming traditional safe-haven assets like gold.

Kendrick's analysis suggests that Bitcoin may be a better hedge than gold against financial system risks. This perspective is supported by the recent trends in ETF flows and the strategic allocation away from U.S. assets. As investors continue to seek alternative investments, Bitcoin's role as a store of value and a hedge against market volatility is likely to become more pronounced. This could drive its price to new heights, potentially reaching the predicted $120,000 mark in the near future.