Bitcoin Surges 9% as Investors Shift to Crypto ETFs

Bitcoin has been trading sideways for much of this month, but it has since regained ground, with crypto ETFs experiencing significant inflows. According to Standard Chartered, American investors are reallocating their positions into the asset, which could drive Bitcoin to new heights.

Geoffrey Kendrick, the Global Head of Digital Assets Research at Standard Chartered, predicts that Bitcoin will reach an all-time high of $120,000 this quarter and $200,000 by the end of the year. This forecast is based on several indicators, including rising yields, the accumulation of Bitcoin by whales, and recent ETF flows suggesting a shift from gold to Bitcoin as a safe-haven asset. Kendrick has been bullish on Bitcoin for several months, reiterating his earlier forecasts despite the cryptocurrency's price fluctuations.

Kendrick's analysis suggests that U.S.-based investors may be seeking non-U.S. assets, which could lead to increased investment in Bitcoin. He expects a strategic reallocation of assets away from U.S. investments to trigger the next significant upswing in Bitcoin's price in the coming months.

Kendrick's prediction aligns with his earlier forecast from late last year, which stated that Bitcoin would reach $200,000 by the end of 2025. This forecast was reiterated two months ago, even as Bitcoin's price dropped from its all-time high near $109,000 earlier in the year.

Bitcoin's recent climb began a week ago as investors grew optimistic about the potential retreat of U.S. President Donald Trump's trade tariffs, which have threatened to cripple the global economy. Bitcoin was recently trading at $94,707 per coin, after jumping nearly 9% over a seven-day period. Last week, investors pumped more than $3.4 billion into crypto funds, with 93% of that total focused on Bitcoin.

Kendrick also noted that Bitcoin's past price action, characterized by sharp rises followed by months of sideways prices, suggests that timing such upswings is crucial. While Bitcoin has occasionally been treated as a safe-haven asset, it often moves in line with "risk-on" investments like tech stocks.

Despite these fluctuations, Kendrick remains optimistic about Bitcoin's future, predicting that gains will continue through the summer, pushing the BTC-USD pair towards his year-end forecast of $200,000.