Bitcoin on Track to Hit New All-Time High, Says Standard Chartered

Bitcoin is poised to reach a new all-time high, according to Geoffrey Kendrick, Global Head of Digital Assets Research at Standard Chartered. Kendrick has set a target of $120,000 for Bitcoin by the second quarter of 2024, describing it as "very achievable." He attributes this optimism to shifting narratives in the Bitcoin market, particularly the focus on capital flows.

Recent data shows significant inflows into U.S.-listed spot ETFs, totaling $5.3 billion over the past three weeks. Meanwhile, hedge fund shorts increased by only $1.2 billion, resulting in a net real flow of over $4 billion. This surge in institutional demand is further supported by large-scale accumulation from major investors.

Notably, Strategy (formerly MicroStrategy) now holds 555,450 Bitcoins, representing approximately 2.6% of the total supply. The company plans to raise $84 billion to acquire even more, potentially increasing its stake to over 6%. Kendrick also highlighted other bullish signals, including gold ETF outflows into Bitcoin ETFs, rising U.S. Treasury term premiums, and buying activity from institutions like the Swiss National Bank and Norges Bank.

Kendrick emphasized that his $120,000 target for Q2 may even be conservative, given the strong momentum. Additionally, a new U.S. catalyst is emerging, as New Hampshire has become the first state to pass a Strategic Bitcoin Reserve bill, which could inspire similar initiatives elsewhere.

Looking ahead, Standard Chartered projects Bitcoin to reach a fresh all-time high of $120,000 in Q2, with a year-end forecast of $200,000. These projections underscore the growing institutional confidence and supportive market dynamics driving Bitcoin's rally.