Standard Chartered’s head of digital assets, Geoffrey Kendrick, has revised his Bitcoin price forecast upward after acknowledging his initial $120,000 prediction for Q2 2025 may be too conservative. In an email to clients on May 8, 2025, Kendrick cited accelerating market momentum and unprecedented institutional demand as key factors behind his updated outlook.

The cryptocurrency, currently trading near $100,000, has demonstrated remarkable strength in recent weeks, primarily driven by a fundamental shift in market dynamics. Bitcoin’s narrative has evolved from being merely a risk asset to becoming a strategic allocation choice for major institutional investors.

Kendrick’s initial forecast was based on several factors, including strategic reallocations away from U.S. assets and significant accumulation by large investors, known as “whales.” He also noted the U.S. Treasury term premium reaching a 12-year high, which historically showed strong correlation with Bitcoin price movements.

The unprecedented surge in institutional participation has been particularly noteworthy. U.S. spot Bitcoin ETFs have attracted more than $5.3 billion in inflows over just three weeks, demonstrating robust institutional confidence. This substantial capital injection has emerged as the primary driver of Bitcoin’s current market trajectory.

Further bolstering the bullish outlook, sovereign wealth funds have made significant moves into the cryptocurrency space. Abu Dhabi’s Mubadala has invested over £400 million in BlackRock’s Bitcoin ETF, whilst the Swiss National Bank has gained indirect exposure through Strategy’s shares, marking a significant milestone in Bitcoin’s mainstream acceptance.

The cryptocurrency’s growing appeal as a strategic asset comes amid increasing economic uncertainties. Traditional safe havens such as U.S. Treasuries and the dollar face challenges from geopolitical tensions, tariff disputes, and concerns about Federal Reserve independence. This has led to notable capital flows from gold to Bitcoin ETFs, suggesting a fundamental shift in how investors view safe-haven assets.

Looking ahead, Kendrick now suggests Bitcoin could potentially reach £200,000 by the end of 2025, significantly surpassing his original Q2 target. This revised outlook reflects the sustained institutional adoption, strategic reallocation trends, and Bitcoin’s growing recognition as a mainstream financial asset.

The cryptocurrency’s rapid evolution from a speculative investment to a core component of diversified portfolios represents a significant shift in the financial landscape. As institutional involvement continues to grow and market dynamics evolve, Bitcoin’s role in global investment strategies appears increasingly solidified.

News Source: CNBC