Standard Chartered: 'Bitcoin $120,000 forecast too conservative... Institutional inflows expand upside potential'

Global bank Standard Chartered stated that the previous target price of $120,000 for Bitcoin (BTC) might be overly conservative, considering the flow of institutional funds, which suggests a significant potential for further increase.

On the 8th (local time), according to US economic media CNBC, Geoffrey Kendrick, head of digital asset research at Standard Chartered, said in an investor letter, "I apologize as the previous forecast of $120,000 by the second quarter of this year seems to have been too low," adding, "Now that figure seems very achievable."

Kendrick previously predicted, "Recently, investors are reducing their US asset holdings, and large holders are continuing to buy Bitcoin," and "This trend will lead Bitcoin to break its all-time high." He foresaw Bitcoin reaching $120,000 during the second quarter and possibly $200,000 by the end of the year. At that time, he also added, "The upward trend will continue throughout the summer."

He assessed the recent market sentiment by stating, "The core flow surrounding Bitcoin has changed again." In the past, Bitcoin showed a similar trend to risky assets like stocks, then it was noted as a means to hedge US assets. However, now the inflow of funds itself is the most important factor. He said, "Funds are now flowing into Bitcoin in various ways."

Kendrick positively evaluated the inflow of $5.3 billion into US spot Bitcoin ETFs over the past three weeks. Additionally, he viewed the additional BTC purchase by MicroStrategy, the Abu Dhabi sovereign wealth fund's holding of BlackRock's IBIT ETF, and the Swiss National Bank's purchase of MicroStrategy shares as major institutional moves supporting the upward trend.

On this day, Bitcoin once rose to an intraday high of $99,897. The market is focusing on the timing of breaking the psychological resistance level of $100,000.