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Standard Chartered’s Geoffrey Kendrick has reiterated his bullish outlook on Bitcoin, predicting that the leading cryptocurrency will reach $120,000 by the second quarter of 2025 and could climb further to $200,000 by the end of the same year.

Key Drivers Behind Bitcoin’s Predicted Surge

In a recent market analysis, Kendrick identified several factors contributing to Bitcoin’s potential price growth. These include strategic asset reallocation away from U.S.-based investments, significant Bitcoin accumulation by large holders—commonly referred to as “whales”—and increasing institutional interest, particularly through growing ETF inflows into Bitcoin.

One notable metric supporting this outlook is the U.S. Treasury term premium, which has reached its highest level in 12 years. Historically, this metric has shown a strong correlation with Bitcoin’s price movements. Kendrick suggests that this could indicate a shift in capital from traditional U.S. bonds to alternative assets like cryptocurrencies.

Historical Price Patterns and Market Behavior

Bitcoin’s performance in previous market cycles also supports Kendrick’s forecast. The cryptocurrency has often exhibited periods of price consolidation, followed by significant upward movements. This historical pattern aligns with the current market structure, hinting that Bitcoin may be on the verge of another upward surge.

Traditional Finance Reengages with Crypto

On a broader scale, global financial institutions, including Deutsche Bank and Standard Chartered, have shown renewed interest in cryptocurrency operations. This resurgence follows a period of turbulence in the crypto space, marked by the collapse of FTX and the shutdown of two major crypto-friendly banks. Despite these challenges, traditional finance is cautiously reentering the sector, signaling a growing confidence in the long-term potential of digital assets.

Additionally, recent political developments, such as discussions around making the U.S. more crypto-friendly, have further bolstered optimism within the crypto community.

Bitcoin’s Current Position and Future Milestones

As of now, Bitcoin is trading at approximately $95,000, a remarkable recovery from its November 2022 lows. This represents a sevenfold increase in value, reinforcing Kendrick’s prediction of a sustained rally in the coming years.

If Bitcoin reaches the projected $120,000 mark in Q2 2025, it would set a new all-time high, surpassing previous peaks recorded in late 2021 and early 2022. Standard Chartered anticipates that this momentum will continue into the summer of 2025, potentially driving Bitcoin toward $200,000 by year-end.

Tips for New Crypto Investors

  • Start Small: Begin with a modest investment to familiarize yourself with the market’s volatility.
  • Diversify: Avoid putting all your capital into a single asset. Spread your investments across different cryptocurrencies and asset classes.
  • Stay Informed: Keep up with market trends, expert analyses, and regulatory updates to make informed decisions.
  • Use Secure Platforms: Choose reputable exchanges and wallets for buying, selling, and storing cryptocurrencies.

Bitcoin’s journey toward potentially reaching six-figure valuations underscores the growing adoption and confidence in digital assets. While market conditions remain dynamic, strategic investment decisions and a long-term perspective can help investors navigate the evolving cryptocurrency landscape.

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