Highlights:
– Standard Chartered predicts Bitcoin to hit $135,000 by Q3 and $200,000 by year-end.
– The bank is positive on Bitcoin reaching $500,000 by 2028.
– Bitcoin’s halving cycle impact may differ from previous trends due to new factors like ETF inflows and corporate buying.
Standard Chartered’s Positive Outlook on Bitcoin
Standard Chartered, a global bank, has expressed optimism about the future of Bitcoin for the remainder of this year. The bank’s digital asset research head, Geoff Kendrick, highlighted the increasing corporate treasury purchases and substantial inflows into exchange-traded funds (ETFs) as key factors supporting their bullish stance on Bitcoin. Kendrick’s analysis suggests that Bitcoin could reach new all-time highs of $135,000 by the end of the third quarter and potentially surpass $200,000 by the end of the year.
This shift in perception by Standard Chartered marks a departure from the traditional halving cycle dynamics, where Bitcoin prices historically declined about 18 months post-halving. Kendrick noted that the halving trend, which would have typically led to price decreases in 2025, seems to have been disrupted by the current market conditions, paving the way for a more bullish outlook for Bitcoin in the near future.
Exploring Bitcoin’s Halving Cycle and Market Dynamics
The analysis conducted by Standard Chartered’s Kendrick delves into the impact of the Bitcoin halving cycle, a phenomenon tied to BTC halving events occurring approximately every four years. These halvings involve reducing Bitcoin mining rewards by 50%, historically resulting in price surges followed by corrections. Previous halving cycles in 2016 and 2020 saw Bitcoin prices declining post-halving.
However, the bank’s current forecast suggests that the aftermath of the upcoming Bitcoin halving in 2024 could diverge from this historical trend. Kendrick attributes this potential shift to new driving forces such as robust ETFs and corporate Bitcoin acquisitions, indicating a more positive trajectory for Bitcoin’s price performance.
Implications of Strong ETF Inflows and Corporate Buying on Bitcoin
Standard Chartered’s observations on Bitcoin ETF flows have been reinforced by recent market developments, where spot Bitcoin ETF investments turned negative after a streak of 15 days of inflows. Despite this short-term setback, Kendrick remains confident in the positive influence of ETFs and corporate buying on Bitcoin’s market dynamics, as evidenced by their substantial contributions totaling 245,000 BTC in Q2.
Looking ahead, Kendrick anticipates continued growth in ETF flows and corporate treasury Bitcoin acquisitions throughout Q3 and Q4, exceeding previous levels. These trends underline a shifting landscape for Bitcoin’s valuation, supported by institutional interest and evolving market dynamics.
Conclusion
Standard Chartered’s bullish outlook on Bitcoin, driven by factors like increasing corporate investments and strong ETF inflows, suggests a significant shift in market sentiment towards the digital asset. As Bitcoin continues to break barriers in its valuation, the intersection of traditional cycles and new market dynamics is reshaping the cryptocurrency landscape, offering both challenges and opportunities for investors and stakeholders.
Will Bitcoin’s price momentum align with Standard Chartered’s predictions in the coming months? How might regulatory developments impact Bitcoin’s growth trajectory? Are ETFs and corporate buying likely to sustain Bitcoin’s upward trajectory in the long term?
Editorial content by Sierra Knightley
