Standard Chartered Predicts Bitcoin Will Reach $130,000

On Thursday, Standard Chartered forecasted that Bitcoin may potentially hit $130,000 within the next two months. This prediction is driven by increasing institutional investments.

Market Stability and Federal Reserve Influence

Geoff Kendrick, the head of foreign exchange and digital asset research at Standard Chartered, linked this optimistic outlook to recent market stability. This stability follows the Federal Reserve’s decision to maintain current interest rates. Kendrick noted that the Fed’s stance has reduced immediate uncertainties in the market ahead of the upcoming policy decision on March 19.

Impact of SEC’s Policy Change

Kendrick highlighted the SEC’s recent withdrawal of crypto accounting guidance, SAB 121. This change could accelerate institutional investments in Bitcoin. It simplifies the process for traditional financial institutions to hold digital assets. Kendrick believes this will drive corporate participation. He anticipates that Bitcoin will soon challenge its previous all-time high of $109,000, with potential price movements between $112,000 and $130,000 in February and March.

Recent Market Volatility

Recent market volatility was triggered by a sell-off linked to news about DeepSeek’s cost-effective AI model. This led to the liquidation of $1.1 billion in long Bitcoin positions on futures exchanges. Kendrick pointed out that this has resulted in a healthier market with reduced leverage.

AI-Driven Deflation and Market Opportunities

Kendrick also mentioned that AI-driven technological deflation could support Bitcoin prices. Lower inflation may benefit risk assets not directly related to AI. Meanwhile, assets closely tied to AI adaptation could see larger gains.

Executive Order and Market Sentiment

Additionally, Kendrick discussed the potential impact of an executive order from the Trump administration. This order aims to establish the U.S. as a leader in the crypto sector. Despite the ambiguous language introducing some market uncertainty, Kendrick believes the market has moved beyond the initial reaction. He views the current phase as a “buying opportunity” during a downturn.