British bank Standard Chartered has reaffirmed its price forecast for Bitcoin, expecting it to reach $200,000 by year-end. The forecast is based on institutional investments and ETF developments.
Price Forecast for Bitcoin
According to the latest report by Standard Chartered, Bitcoin is expected to rise to $135,000 by September 30, and potentially reach $200,000 by December 31. This implies a record increase of $92,000 in six months, given the current price around $107,500.
Role of ETFs and Institutional Demand
The report states that institutional investors and spot Bitcoin ETFs accumulated 245,000 BTC in the second quarter, equivalent to approximately $26 billion. It is anticipated that this number could be surpassed in the third and fourth quarters. In particular, data shows companies outside the Strategy purchased 56,000 BTC in the second quarter, nearing Strategy's acquisition of 69,000 BTC during the same period.
Political Factors Influencing Price
Kendrick argues that the current price cycle is shaped more by permanent capital inflows than supply shocks. The report also identifies three potential political catalysts that could foster further upside: a pro-rate-cut replacement for the Fed Chair, bipartisan support for the stablecoin bill, and 13F reports showing sovereign fund purchases. These factors may strengthen correlation with volatility and drive up the price of Bitcoin.
Thus, Standard Chartered's forecasts enhance interest in Bitcoin as an investment asset backed by institutional investments and political factors.
