Standard Chartered predicts that Bitcoin will soon reach a new all-time high. The bank believes its second quarter goal of $120,000 is becoming more and more realistic.
Banks support this forecast with several key factors. These include strong accumulation activities by the big Bitcoin ETFs and sector companies, as well as expanding adoption of Bitcoin in the US.
What drives Q2’s Standard Chartered’s $120,000 Bitcoin Prediction?
In an interview with Beincrypto, Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, said Bitcoin could soon reach a new peak. He attributes this potential surge to influx into ETFs, strategic (previously micro-strategic) investment strategies, and institutional involvement.
Kendrick highlighted the role of capital flows in current bull trends. According to GlassNode data, ETF influx has returned strongly in the past two weeks. At the same time, Bitcoin rebounded from $84,000 to $99,000.
Bitcoin US Spot ETF Flow. Source: GlassNode.
“The price rise in Bitcoin is currently about flows, and flows are coming in many ways. Spot US ETFs have seen an inflow of $5.3 billion over the last three weeks. My price adjustment calculation shows that it has only increased by $1.2 billion over this period, so the net actual flow is over $400 million.
Another important factor that Kendrick noted is the continued accumulation of Bitcoin in its strategy. Bitcointreasuries data shows that the company has been steadily accumulating Bitcoin since the second half of 2024. The recent price recovery has resulted in the strategy’s total holdings reaching record value of over $53.8 billion.
Strategic Bitcoin Holdings are held over time. Source: Bitcointreasuries
“They currently hold 555,450 Bitcoins, 2.6% of all Bitcoins that exist. There are new plans to raise another $84 billion and add another $840,000 of Bitcoins.
Kendrick said the 13th Fund submission from ETFS and Strategy shed more light on investment activities.
He also highlighted the increased involvement of key institutions, including the Sovereign Wealth Fund in Abu Dhabi, the Swiss National Bank and the Norges Pension Fund. This trend shows the increased acceptance of Bitcoin in traditional portfolios.
“At the end of December, the Abu Dhabi Sovereign Wealth Fund held a small position worth 4,700 Bitcoin at IBIT, which increased and I think other long-term buyers also took part.
It’s not just the intervention institutions. Local governments in the US are also taking action. A recent Beincrypto report reveals states such as Arizona, New Hampshire, Texas and Oregon are making significant progress in strategic Bitcoin Reserve Acts.
“New Hampshire has recently become the first US state to pass a strategic Bitcoin reserve bill, and we hope other states will follow suit,” he said.
Given all these factors, Kendrick is optimistic about Bitcoin’s price outlook. Still, he admits that his predictions may be conservative.
“We apologize if your second quarter goal of $120,000 may be too low,” he concluded.
The combination of strong ETF influx, active accumulation of strategies, growing institutional participation, and supportive local policies in the US creates the perfect storm for Bitcoin. According to Standard Chartered, the best new Bitcoin ever could be, and it could be close by.
