Bitcoin (BTC) Price 2Q Target of $120K May Be Too Conservative: Standard Chartered

Bitcoin (BTC) is poised to hit a brand new document excessive, with funding flows now the dominant market driver, in line with Standard Chartered (STAN).

U.S. spot bitcoin exchange-traded funds (ETFs) have seen $5.3 billion in inflows over the previous three weeks, the funding financial institution mentioned in emailed feedback Thursday.

Adjusting for hedge fund foundation trades, web actual move is estimated at over $4 billion, the financial institution mentioned. The foundation commerce is a method that exploits the distinction between the spot value of bitcoin and the worth of the cryptocurrency within the futures market.

Strategy (MSTR) has elevated its holdings to 555,450 BTC, or 2.6% of complete future provide, which is locked at 21 million BTC. The firm’s plan to elevate $84 billion to purchase extra of the world’s largest cryptocurrency may convey its stash to over 6%, wrote Geoff Kendrick, head of digital property analysis at Standard Chartered.

Next week’s 13F filings could reveal additional institutional adoption, Standard Chartered mentioned. Abu Dhabi’s sovereign fund already holds BlackRock’s bitcoin ETF (IBIT), and each the Swiss National Bank and Norges Bank have disclosed positions in MSTR.

New Hampshire handed a Strategic Bitcoin Reserve invoice this week, the primary U.S. state to take action, which indicators rising coverage alignment, the report added.

Given these developments, a second-quarter bitcoin goal of $120,000 could also be too conservative, the financial institution mentioned, citing its earlier forecast.

The financial institution has a year-end bitcoin value goal of $200,000.

The world’s largest cryptocurrency was buying and selling round $101,000 at publication time.

Read extra: Bitcoin to Hit New All-Time High Around $120K in Q2, Standard Chartered Says

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