Standard Chartered predicts that bitcoin will soon reach a new all-time high. The bank believes that the target of $120,000 in the second quarter is becoming increasingly realistic.
The bank supports this forecast with several key factors. Among them are the active accumulation of bitcoin by ETFs and large companies in the sector, as well as the growing institutional acceptance of bitcoin in the US.
What drives Standard Chartered's bitcoin forecast of $120,000 in the second quarter?
In an interview with BeInCrypto, Jeff Kendrick, head of digital asset research at Standard Chartered, noted that bitcoin may soon reach a new peak. He attributes this potential surge to inflows into ETFs, the investment strategy of Strategy (formerly MicroStrategy), and institutional participation.
Kendrick emphasized the role of capital flows in the current bullish trend. According to Glassnode, inflows into ETFs have significantly increased over the past two weeks. At the same time, bitcoin has recovered from $84,000 to $99,000. Another key factor pointed out by Kendrick is the ongoing accumulation of bitcoin by Strategy. Data from BitcoinTreasuries shows that the company has been steadily accumulating bitcoin since late 2024. With the recent price recovery, the total value of Strategy's assets reached a record over $53.8 billion. Kendrick noted that upcoming 13F reports from ETFs and Strategy will shed more light on investment activities.
He also highlighted the increasing participation of large institutions, including the sovereign wealth fund of Abu Dhabi, the Swiss National Bank, and the Norwegian Pension Fund. This trend indicates growing acceptance of bitcoin in traditional portfolios.
«At the end of December, the sovereign wealth fund of Abu Dhabi had a small position equivalent to 4,700 bitcoins in IBIT. I expect it has increased, and other long-term buyers have also joined. Notably, the Swiss National Bank recently started purchasing MicroStrategy along with the Norwegian Pension Fund,» he said.
Not only institutions are participating. Local governments in the US are also taking action. A recent report from BeInCrypto showed that states like Arizona, New Hampshire, Texas, and Oregon are making significant progress in legislation regarding strategic bitcoin reserves.
«New Hampshire recently became the first US state to pass a bill on strategic bitcoin reserves, and I expect other states to follow suit,» he said.
Considering all these factors, Kendrick remains optimistic about the bitcoin price forecast. However, he acknowledges that his forecast may be conservative.
«I apologize if my target of $120,000 in the second quarter may be too low,» he concluded.
A combination of strong inflows into ETFs, aggressive accumulation by Strategy, increasing institutional participation, and supportive local policies in the US creates the perfect storm for bitcoin. According to Standard Chartered, a new all-time high for bitcoin is not only possible – it may be very close.#StandartChartered #TradeStories #BinanceSquare #Write2Earn #BTCtrade $ETH