tl;dr
Standard Chartered predicts Bitcoin will reach a new all-time high of $120,000 in Q2, driven by strong ETF inflows, major company accumulations (notably Strategy/MicroStrategy), and growing institutional adoption in the US. Geoff Kendrick, Head of Digital Asset Research, highlights significant capit...
Standard Chartered forecasts Bitcoin to reach an impressive $120,000 in Q2, propelled by several key factors: strong ETF inflows, MicroStrategy’s (formerly Strategy) aggressive accumulation, growing institutional adoption, and supportive legislation in US states.
Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, highlights robust capital flows underpinning this bullish outlook. US spot ETFs have seen inflows totaling $5.3 billion over just three weeks, signaling heightened investor interest. Meanwhile, MicroStrategy's Bitcoin holdings have surged to 555,450 coins, amounting to 2.6% of the total supply, with plans to raise $84 billion to increase their stake by 840,000 Bitcoins.
Institutional involvement continues to expand with heavyweight players such as Abu Dhabi’s sovereign wealth fund, the Swiss National Bank, and the Norges Pension Fund increasing their Bitcoin exposure. This signals a broader acceptance of Bitcoin within traditional portfolios.
On the regulatory front, states like New Hampshire have pioneered Bitcoin reserve legislation, encouraging other US states including Arizona, Texas, and Oregon to consider similar measures, fostering a supportive policy environment.
Kendrick suggests that the $120,000 price target might be conservative given the confluence of ETF inflows, corporate accumulations, institutional participation, and favorable local policies. This "perfect storm" could propel Bitcoin to new all-time highs, potentially reshaping the cryptocurrency market landscape in the near future.