- Bitcoin could rise by 25% in Q2 to reach $120K, according to Standard Chartered’s analysis.
- The cryptocurrency is expected to climb to $200K by the end of 2025, driven by rising demand and market shifts.
What happened: Bitcoin set to reach 120K in Q2 standard chartered predicts
Bitcoin (BTC-USD) is projected to hit new record highs. Analysts at Standard Chartered predict it could reach $120K by the end of Q2. This forecast suggests a 25% rise from its current value of around $95K. The bullish outlook is driven by a combination of factors, including a shift away from U.S. assets and positive technical signals.
Geoff Kendrick from Standard Chartered highlighted the U.S. Treasury term premium reaching a 12-year high. This premium has a strong correlation with Bitcoin’s price movements. The term premium is the extra yield investors demand for holding longer-term U.S. Treasury bonds over shorter-term ones. Historically, a rising term premium has indicated increased investor interest in Bitcoin.
Additionally, large Bitcoin holders, referred to as ‘whales,’ have been accumulating significant amounts of the cryptocurrency. Corporate entities, including Michael Saylor’s Strategy (MSTR), have disclosed regular Bitcoin purchases. These institutions have been making ongoing Bitcoin acquisitions, reinforcing confidence in the long-term potential of the digital asset.
Also read: Bitcoin whales increase holdings
Also read: Bitcoin sheds ‘tech stock’ label as investors seek digital gold
Why it is important
This projected rise in Bitcoin’s price is significant for its potential to set new records. It also has broader implications on global asset allocations. As U.S. investors move away from Treasury bonds and other dollar-denominated assets, Bitcoin is becoming a key part of investment portfolios. Standard Chartered’s bullish stance comes amid a broader trend of asset reallocation, where investors seek alternatives to traditional U.S. assets.
The growing role of Bitcoin as a store of value, especially in uncertain economic climates, signals a shift in how cryptocurrencies are viewed. Both institutional and retail investors are changing their views. The demand for safe-haven assets, such as Bitcoin and gold, has increased. Investors seek protection from potential declines in the value of fiat currencies. This shift could further cement Bitcoin’s role as a valuable alternative asset in global portfolios.
However, market analysts like Damir Tokic suggest Bitcoin’s future path remains uncertain. Bitcoin could face fluctuations depending on broader economic factors. Tokic pointed out that Bitcoin may decline with the Nasdaq 100 or deteriorating market sentiment. Alternatively, Bitcoin may continue as a safe haven if the U.S. dollar weakens, influencing its role in the global financial system.
