Standard Chartered: Bitcoin to Reach $200,000 by Year-End... Institutional Buying and Capital Inflows Intensify

Global bank Standard Chartered has forecasted that Bitcoin (BTC) will reach $200,000 by the end of this year. The driving forces behind this rise include institutional buying, ETF inflows, and demand for hedging against U.S. Treasury risks.

On the 22nd (local time), according to cryptocurrency-focused media The Block, Geoffrey Kendrick, head of digital asset research at Standard Chartered, stated, "Bitcoin is experiencing all anticipated upward factors simultaneously," adding, "We see a target of $120,000 by the end of Q2, $200,000 by year-end, and $500,000 by 2028."

According to the report, many countries and institutional investors are expanding their exposure to Bitcoin through indirect means such as Strategy (formerly MicroStrategy) via 13F filings submitted to the U.S. Securities and Exchange Commission (SEC). This trend continues into the second quarter of this year.

Kendrick also noted, "While over $3.6 billion has exited gold ETFs since the price peak on the 22nd of last month, more than $7.5 billion has flowed into Bitcoin ETFs during the same period," analyzing that "the center of capital flow is shifting towards Bitcoin."

Furthermore, he added, "Bitcoin maintains a high correlation with the U.S. Treasury premium, and as domestic and international bond market risks increase, Bitcoin's attractiveness grows."

Meanwhile, the U.S. Treasury premium reflects the risk premium element of how much higher long-term Treasury yields are compared to short-term yields. As market interest rate instability or declining trust in U.S. finances grows, Bitcoin tends to be highlighted as an alternative asset.