Bitcoin has surpassed $100,000 for the first time since February, prompting Standard Chartered’s Geoffrey Kendrick to raise the price forecast for Q2 from $120,000 to $200,000 by year-end. The shift reflects significant institutional investment and recent legislative support. Kendrick believes the price surge indicates a strategic move away from US assets and increased whale accumulation, marking a notable trend in Bitcoin’s market dynamics.
Bitcoin’s resurgence has been notable this week as it crossed the $100,000 mark early Thursday morning, marking its highest price point since February. Currently, the cryptocurrency is just about 8% off its all-time high, according to data from TradingView. This momentum has amplified bullish sentiments in the market, prompting analysts to reassess their price forecasts.
Geoffrey Kendrick, who leads the digital assets team at Standard Chartered, has notably revised his Q2 price target for Bitcoin. In an email sent to clients, Kendrick conveyed regret regarding his previous prediction that Bitcoin would peak at $120,000. He now believes that his earlier estimate may have underestimated Bitcoin’s potential.
Back in April, Kendrick had suggested that Bitcoin could reach $120,000 within the second quarter of this year. He has now also set a more ambitious year-end target of $200,000, reflecting his evolving outlook on the cryptocurrency market. Several strong factors underpin this revised forecast, such as a strategic shift away from US assets, substantial accumulation by ‘whales’ (large investors), and increased interest from institutions, alongside supportive regulatory developments.
Kendrick’s analysis indicates a major shift in market dynamics surrounding Bitcoin. Initially correlated with traditional risk assets like technology stocks, the current narrative has evolved. Bitcoin is now viewed not just as a speculative investment but as a strategic hedge against US assets; positive cash flow from diverse sources is increasingly finding its way into Bitcoin.
The trigger for this latest rally can be traced back to Wednesday night when Bitcoin surged past the $98,000 threshold. This price surge was fuelled in part by optimism surrounding impending US-China trade discussions, which have rekindled institutional interest in Bitcoin.
Additionally, recent legislative movements have bolstered the market’s confidence. Notably, the governor of Arizona signed a Bitcoin reserve bill into law on Wednesday, just after having vetoed another crypto-related bill. This legislative milestone follows similarly significant developments in New Hampshire, where the state became the first in the US to officially pass a Bitcoin reserve bill.
