- Bitcoin surpassed $100K as ETFS saw $5.3B in inflows over the past three weeks.
- Standard Chartered now says its $120K Bitcoin target for Q2 may be too low.
- MicroStrategy and sovereign funds increase Bitcoin exposure, signalling strong institutional demand.
Geoffrey Kendrick, who runs the digital asset department at Standard Chartered, has revised his outlook on bitcoin since its recent surge to above $100,000. In a client update, Kendrick expressed having set his previous prediction of a consensus Bitcoin level of $120,000 in the second quarter of 2025 as “too low”. His new vision shows increasing confidence in the upward momentum of Bitcoin, with institutional inflows and changing behaviour from investors.
Kendrick initially presented the $120,000 projection last month, citing strategic asset reallocation out of U.S. markets and accumulation by large holders, or “whales,” as they are known. On Thursday, he said these supportive environments are still there and that more inflows could lift the BTC above his initial expectation.
Institutional Investment and Market Drive Bitcoin Surge
According to Coin Metrics, the revised commentary is based on Bitcoin’s trek past the $100,000, with prices currently trading near $100,511.22. Kendrick noted that Bitcoin’s rally is no longer pegged solely to a more general market risk dynamic, like the performance of U.S. tech stocks. He now blames the surge on constant capital inflows, especially from institutional investors.
Data supports this trend. Over the last three weeks, U.S. spot Bitcoin exchange-traded funds (ETFS) have gathered over USD 5.3 billion in inflows. These inflows imply that Bitcoin is integrating more within institutional portfolios. Kendrick cited detailed examples of the big buyers, including MicroStrategy, the Abu Dhabi sovereign wealth fund, and the Swiss National Bank.
Microstrategy, a company known to hold massive amounts of Bitcoin, has now ballooned its exposure even more. Many market actors see the firm as a fairly direct proxy for Bitcoin investment because of its massive holdings. Meanwhile, growth in the adoption of ETFS by institutions, such as BlackRock’s IBIT, indicates the growing acceptance of Bitcoin as an asset class in regulated investment vehicles.
Standard Chartered Bitcoin Outlook and Strategic Positioning
Kendrick feels that the narrative surrounding Bitcoin keeps evolving. Whereas previously Bitcoin was associated with the trend of risk assets, he now realises a transition towards its use as a hedge or a means of portfolio diversification. Given the current rate of adoptions and inflows, he still has a bullish position and affirmed his end-of-the-year $200,000 price estimate.
Standard Chartered Analysts have remarked that Bitcoin’s latest performance echoed that associated with conventional risk assets, but rising institutional interest may start to change this trend. According to Kendrick’s revised analysis, the focus must now be on the investor’s capital flows and strategy rather than macroeconomic correlation only.
With Bitcoin still above six figures, institutional involvement seems to be dictating its valuation more. Market commentators will continue to follow flows, ETF dynamics, and strategic asset allocation actions to determine whether or not Bitcoin can hold its momentum into the end of 2025.
