StanChart Forecasts Bitcoin Surge to $120,000 by Q2
Bitcoin (BTC) is projected to hit a record high of $120,000 in the second quarter of 2025. This forecast stems from anticipated strategic shifts in asset allocation and changing investment dynamics.
In a recent analysis, the head of digital assets research emphasized that a variety of factors are coming together to create an optimistic outlook for Bitcoin.
The analyst stated:
“I believe we are entering a phase of significant upward movement for several reasons.”
The contributing elements include reallocations of assets, a trend of US investors moving away from domestic investments, accumulation by Bitcoin whales, and a migration of funds from gold ETFs to Bitcoin ETFs.
He pointed out that previous market patterns, which typically involve sharp rises followed by extended periods of consolidation, underscore the importance of being prepared for such fluctuations.
Strategic Asset Movement
The analysis indicates that the shift away from US investments presents a key opportunity for Bitcoin’s anticipated growth.
The analyst noted that the increasing US Treasury term premium, a factor that closely tracks Bitcoin’s price, reveals a trend in reallocating investments that could benefit Bitcoin.
Furthermore, trading patterns suggest that US investors are increasingly divesting from domestic assets, while on-chain metrics show a consistent accumulation of Bitcoin by major holders in recent months.
There are also signs that funds are moving from traditional gold ETFs into Bitcoin ETFs, further energizing this positive outlook.
At present, Bitcoin is trading around $94,000, significantly up from its lowest point in November 2022. The firm anticipates that these encouraging factors will elevate Bitcoin to a new peak in the upcoming quarter.
Vision for $200,000
Looking even further forward, the analyst reiterated the end-of-2025 price target, asserting:
“This brings us closer to my forecast of $200,000 by year-end.”
The analysis highlighted that while predicting the precise timing of the surge can be challenging, the current indicators suggest a likely upward movement soon.
A chart presented in the report reinforced the strong historical link between Bitcoin’s price and the US Treasury term premium, supporting the case that macroeconomic changes could enhance Bitcoin’s trajectory.
The analyst concluded with a suggestion to prepare for an imminent upswing in Bitcoin prices.
The firm’s optimistic perspective comes as Bitcoin continues to draw institutional investments and gain recognition as a strategic asset amidst global market uncertainties.
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