Standard Chartered Bank has recently projected that Bitcoin (BTC) could reach a new all-time high of $120,000 in the second quarter of 2025. This forecast is based on several key factors influencing the cryptocurrency market.
Key Drivers Behind the $120K Prediction
Strategic Shift Away from U.S. Assets: Economic uncertainties, including rising tariffs and concerns over the Federal Reserve's independence, are diminishing investor confidence in traditional U.S. assets like Treasurys. This has led to a strategic reallocation towards alternative assets such as Bitcoin, which is increasingly viewed as a superior safe-haven asset compared to gold. Business Insider
prospective stablecoin legislation. Business Insider
Miner Behavior and Supply Dynamics: Increased profitability for Bitcoin miners allows them to sell fewer coins while maintaining cash inflows. This behavior reduces the net supply of Bitcoin in the market, exerting upward pressure on its price. Standard Chartered estimates that if Bitcoin's price reaches $50,000, miners might reduce their daily sales from 900 BTC to between 180 and 270 BTC, leading to a significant annual decrease in net supply. Business Recorder+6Bloomberg Law News+6Wall Street Observer+6Decrypt+6NewsBTC+6Investing.com+6
Upcoming Bitcoin Halving Event: The next Bitcoin halving, expected in April or May, will reduce the number of new Bitcoins mined daily by half. This built-in mechanism to limit supply is anticipated to further drive up Bitcoin's price by increasing scarcity. NewsBTC+4Business Recorder+4Wall Street Observer+4Investing.com
Long-Term Outlook
Beyond the $120,000 target in Q2 2025, Standard Chartered maintains a bullish stance, projecting Bitcoin could reach $200,000 by the end of 2025. This optimistic outlook is supported by factors such as potential inflows into spot Bitcoin ETFs and favorable regulatory developments. markets.businessinsider.com+4AInvest+4investopedia.com+4$BTC