Bitcoin (BTC) is on track to reach new record highs sooner than expected, according to Standard Chartered’s head of digital assets research, Geoffrey Kendrick. In a recent investor note, Kendrick revised his previous price target of $120,000 for the second quarter, stating that it may be too low given the current market momentum.
As of May 8, Bitcoin was trading at $101,751, up 5.66% over the past 24 hours. Kendrick attributed this surge in price to mounting institutional inflows and a global shift in asset allocation. He noted that the narrative around Bitcoin has shifted from being primarily a risk asset to now being viewed as a strategic reserve asset.
The rally in Bitcoin is no longer being driven by speculation, but by flows from ETFs and long-term institutional buyers. Kendrick pointed out that US-listed spot Bitcoin ETFs have seen inflows of $5.3 billion in the past three weeks, with estimated net flows likely exceeding $4 billion after adjusting for basis trades and short hedge positions.
Corporate and sovereign actors are also playing a significant role in Bitcoin’s recent performance. MicroStrategy, for example, has increased its Bitcoin holdings to 555,450 BTC, representing 2.6% of the total supply. The firm plans to raise an additional $84 billion to fund further Bitcoin purchases, potentially increasing its total share to over 6% of the total supply.
Sovereign wealth funds and central banks are also beginning to embrace Bitcoin. Kendrick highlighted Abu Dhabi’s 4,700 BTC-equivalent position in IBIT and noted that other long-term buyers have likely joined since then. The Swiss National Bank and Norway’s Norges Bank have also initiated positions in MSTR.
On the policy front, Kendrick mentioned New Hampshire’s Strategic Bitcoin Reserve bill and highlighted Arizona’s recent legislation establishing a Bitcoin reserve fund. Texas is on the verge of approval, with approximately 11 other states considering similar bills.
With more institutional disclosures expected next week via 13F filings, Kendrick warned that Bitcoin’s upward trajectory may continue to surprise. As of May 8, Bitcoin held the top spot by market cap with a valuation of $2.03 trillion and a 24-hour trading volume of $61.74 billion.
Overall, Bitcoin’s growing institutional adoption, shifting narrative, and increased global interest suggest that the cryptocurrency is poised for further gains in the near future. Investors and market participants will be closely watching to see how these trends play out in the coming weeks.