Standard Chartered Bank has issued a bullish forecast, predicting Bitcoin (BTC) will surpass $120,000 in the second quarter of 2025. This projection is based on several key factors influencing the cryptocurrency market.
Key Drivers Behind the Projection
Geoffrey Kendrick of Standard Chartered highlights the following indicators supporting the anticipated price surge:
U.S. Treasury Premiums: A significant increase in long-term U.S. Treasury premiums, reaching a 12-year high, suggests investors may shift from domestic bonds to alternative assets like Bitcoin.
Institutional Accumulation: A rise in Bitcoin holdings by large investors, or "whales" (entities holding over 1,000 BTC), indicates growing confidence in Bitcoin as a long-term investment.
ETF Capital Flows: Recent trends show investors reallocating funds from gold ETFs to Bitcoin ETFs, reflecting a shift in preference towards Bitcoin as a hedge against economic uncertainty.
Global Investment Trends
The report notes a global trend of investors moving away from U.S. dollar-based assets towards non-U.S. assets, including Bitcoin. This shift is evident among both U.S. and Asian investors, underscoring Bitcoin's emerging role as a global safe-haven asset.
Long-Term Outlook
Standard Chartered maintains a year-end target of $200,000 for Bitcoin, following the projected $120,000 milestone in Q2 2025. With Bitcoin currently trading around $94,560, this forecast suggests significant growth potential. Kendrick advises that the present may be an opportune time for investors to consider entering the Bitcoin market.
Investment Considerations
While the outlook is optimistic, investors should conduct thorough research and consider market volatility before making investment decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry risks, and past performance is not indicative of future results.