Standard Chartered predicts that Bitcoin will soon reach a new All-Time-High. The bank believes that the 120,000 USD target in the second quarter is becoming increasingly realistic.
The bank supports this forecast with several key factors. These include strong accumulation activities by Bitcoin ETF funds and large companies in the industry, along with increasing institutional acceptance of Bitcoin in the US.
What Drives Standard Chartered's Bitcoin 120,000 USD Prediction for Q2?
In an interview with BeInCrypto, Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, said Bitcoin could soon reach a new peak. He believes this potential growth is due to ETF inflows, Strategy's investment strategy, and institutional participation.
Kendrick emphasized the role of capital in the current price trend. According to data from glassnode, ETF inflows have strongly returned in the past two weeks. Meanwhile, Bitcoin has recovered from 84,000 USD to 99,000 USD.
Bitcoin ETF inflows in the US. Source: glassnode."Bitcoin's current price increase is entirely dependent on capital flow, and this flow is coming from multiple sources, with US ETFs attracting 5.3 billion USD in 3 weeks. Based on my price adjustment calculations, this only increased by 1.2 billion USD during this period, so the actual net capital flow is over 4 billion USD," Kendrick said.
Another important factor Kendrick pointed out is Strategy's continuous Bitcoin accumulation. Data from BitcoinTreasuries shows the company has been steadily accumulating Bitcoin since late 2024. With the recent price recovery, the total Bitcoin held by Strategy has reached a record value of over 53.8 billion USD.
Strategy's Bitcoin holdings over time. Source: BitcoinTreasuries"They currently hold 555,450 Bitcoin, representing 2.6% of the total Bitcoin that will exist. Their new plan to raise an additional 84 billion USD to buy more Bitcoin will add another 840,000 Bitcoin. At 100,000 USD, this would increase their holdings to over 6% of the total Bitcoin that will exist," Kendrick added.
Kendrick noted that the upcoming 13F reports from ETF funds and Strategy will provide more clarity on investment activities.
He also emphasized the increasing participation of large institutions, including Abu Dhabi's national asset fund, the Swiss National Bank, and the Norges Pension Fund. This trend shows growing Bitcoin acceptance in traditional investment portfolios.
"By the end of December, Abu Dhabi's national asset fund held a position equivalent to 4,700 Bitcoin in IBIT. I expect this number has increased, and other long-term investors have also joined. Notably, the Swiss National Bank recently started buying MicroStrategy, along with the Norges Pension Fund," he said.
It's not just institutions participating. Local US governments are also taking action. A recent BeInCrypto report revealed that states like Arizona, New Hampshire, Texas, and Oregon are making significant progress in legislating strategic Bitcoin reserves.
"New Hampshire has recently become the first US state to pass a Strategic Bitcoin Reserve bill, and I expect other states to follow," he said.
With all these factors, Kendrick remains optimistic about Bitcoin's price prospects. However, he acknowledges his forecast might be conservative.
"I apologize if my 120,000 USD target in Q2 might be too low," he concluded.
The combination of strong capital inflows from ETF funds, Strategy's robust accumulation, increasing institutional participation, and supportive local policies in the US are creating a perfect storm for Bitcoin. According to Standard Chartered, a new All-Time-High for Bitcoin is not only possible but may be approaching.
