Standard Chartered Predicts Bitcoin to Hit $120,000 by Q2

Standard Chartered's Global Head of Digital Assets Research, Geoffrey Kendrick, has expressed a bullish outlook on Bitcoin, predicting that the cryptocurrency could reach a price of $120,000 in the second quarter of this year. Kendrick's forecast is based on several key factors that he believes will drive Bitcoin's value upward.
Kendrick noted that the dominant narrative around Bitcoin has shifted to focus on flows, with U.S.-listed spot ETFs seeing significant inflows. He highlighted that net real flow into Bitcoin has been substantial, with inflows of $5.3 billion over the past three weeks, while offsetting hedge fund shorts increased by only $1.2 billion. This indicates a strong net inflow into Bitcoin.
Kendrick also pointed to large-scale accumulation by major investors, including Strategy, which now holds 555,450 Bitcoins—around 2.6% of the total supply. Strategy plans to raise $84 billion to buy even more, potentially pushing its ownership to over 6%. This accumulation by major investors is seen as a supportive signal for Bitcoin's price.
Other supportive signals include gold ETF outflows into Bitcoin ETFs, a surge in U.S. Treasury term premium, and buying activity by institutions like the Swiss National Bank and Norges Bank. These factors, along with the increasing institutional adoption of Bitcoin and the growing acceptance of cryptocurrencies as a legitimate asset class, are expected to drive Bitcoin's price to new heights.
Kendrick's prediction comes at a time when the cryptocurrency market is experiencing significant interest and volatility. He believes that these supportive factors will push Bitcoin to a fresh all-time high around $120,000 in the second quarter. Additionally, Standard Chartered expects the rally to continue, projecting a year-end price of $200,000.
A new catalyst for Bitcoin's price surge could be emerging in the U.S. New Hampshire recently became the first state to pass a Strategic Bitcoin Reserve bill, which Kendrick believes could inspire similar moves elsewhere. This regulatory development is seen as a positive sign for Bitcoin's future.
While some analysts remain skeptical of the feasibility of Bitcoin reaching $120,000 in such a short time frame, Kendrick remains optimistic. He cited the bank's extensive research and analysis of the cryptocurrency market as the basis for his forecast. The prediction has sparked a wave of interest in the cryptocurrency market, with investors and analysts alike weighing in on the potential for Bitcoin to reach $120,000.

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