Standard Chartered Bank predicts Bitcoin will soar to $200,000 by the end of the year

UK's leading banking giant Standard Chartered has maintained its target price of $200,000 for Bitcoin by the end of the year in its latest report. Geoffrey Kendrick, the bank's Head of Digital Asset Research, expects the price of the largest cryptocurrency to rise to $135,000 by September 30 and eventually reach $200,000 by December 31. This forecast implies that Bitcoin's price will surge by $92,000 in just six months, setting a new historical high, with the current trading price of Bitcoin around $107,500. The report attributes this expected growth to inflows into spot ETFs, corporate bond purchases, and anticipated regulatory developments.

ETF and institutional demand driving price increases

The report shows that spot Bitcoin ETFs and institutional investors cumulatively held 245,000 Bitcoins worth approximately $26 billion in the second quarter. Kendrick believes that as passive fund allocations continue and publicly traded companies emulate Strategy's leveraged funding management model, this number could be surpassed in the third and fourth quarters. Data shows that outside of Strategy, companies purchased 56,000 Bitcoins in the second quarter, nearing Strategy's acquisition of 69,000 Bitcoins during the same period.

The bank emphasizes that during periods of heightened geopolitical tension, the trend of cryptocurrencies as the largest safe-haven asset is becoming increasingly evident. From April to June, Bitcoin ETF inflows reached $12.4 billion, surpassing the inflows of gold ETFs, solidifying Bitcoin's status as a macro asset. Additionally, the limited short positions in the Chicago hedge fund futures market are also seen as a factor supporting Bitcoin's price.

The report identifies three potential political catalysts that could drive Bitcoin further up: President Donald Trump's announcement of a proportional interest rate cut to replace Federal Reserve Chair Jerome Powell, bipartisan support in Congress for the stablecoin bill GENIUS, and 13F reports showing sovereign funds will purchase Bitcoin. The bank believes these developments could push up the yields on 10-year U.S. Treasury bonds, enhance Bitcoin's correlation, and drive the price of Bitcoin to $135,000 by September 30, eventually reaching $200,000 by the end of the year. There are many opportunities; when to jump in and position yourself, seize this wave of the bull market!!