What should cause Bitcoin to rise to $130,000 in just two months: Standard Chartered’s explanation
The previous week turned out to be extremely eventful for the crypto sphere. Still, Donald Trump published the first executive order on digital assets and banned the launch of CBDC, and the Securities Commission cancelled the bulletin SAB 121, which obliged companies to account coins in their accounts as liabilities and thus required additional expenses. Already these two points are enough for Bitcoin to set a new all-time high for the exchange rate.
What will be the Bitcoin rate in 2025?
Jeff Kendrick, an analyst at Standard Chartered Bank, shared his opinion on the market situation. In his opinion, the conditions in the coin industry allow to count on the growth of Bitcoin to the level of 130 thousand dollars for two months. Still, the inflow of capital into the crypto from large institutional investors is gaining momentum, and the mood of market participants is shifting towards risk.
The expert believes that now the financial markets have moved to a stage of relative stability. This was facilitated by yesterday’s decision by the US Federal Reserve System to keep the base interest rate at the same level.
US Fed Chairman Jerome Powell
Although experts were counting on just such an outcome, the calm reaction of traders combined with the endorsement of cryptocurrencies from Fed Chairman Jerome Powell led to Bitcoin jumping above $105,000. Kendrick believes that macroeconomic risks will be relevant until the next FOMC meeting on 19 March, but yesterday’s verdict of bankers still reduced uncertainty in the markets.
The Standard Chartered representative also recalled the recent cancellation of SAB 121 by the Securities Commission. Thanks to this, large financial companies will be able to interact with crypto without additional costs, which will definitely strengthen their interest in digital assets. Kendrick calls the bulletin a key regulatory barrier that prevented the popularisation of coins among institutional-level players.
With this in mind, the expert expects new Bitcoin records in the coming weeks. Here is his rejoinder, which is cited by The Block.
As a result, institutional capital flows into Bitcoin will continue to gain momentum. In addition, I expect BTC to rise to between $112,000 and $130,000 in February and March.
The actual maximum of the first cryptocurrency is $109,588, which was recorded on 20 January. In general, predicting the rate of the asset above its record value is harder than usual, because the market has never been in such a position before. So Kendrick's version should be treated with caution, because there are no guarantees that such a forecast will be realised.
Bitcoin’s strength against the background of fiat currencies
However, the expert is definitely confident in the near future of the market. He recalled the collapse of crypto and other financial markets on Monday amid panic over the Chinese AI project DeepSeek, during which the volume of liquidations on cryptocurrency futures reached $1.1 billion. Jeff Kendrick called what happened a release from excessive leverage of crypto traders and believes that “as a result, the market positioning of the digital asset industry has become cleaner.”
The expert also believes that the possible technological deflation of artificial intelligence technology given the success of DeepSeek could also be good for BTC. He continues.
If cheaper artificial intelligence models reduce inflation at the periphery, then risk assets like Bitcoin, which is not linked to it, should also benefit.
😈 MORE INTERESTING STUFF FROM US AT YANDEX.ZEN!
Who wants to buy Bitcoin BTC
Contributing to the growth of BTC can also be purchases of the cryptocurrency by US states. Now Illinois has joined the list of states whose representatives have presented a bill for investing capital in Bitcoin, Decrypt reports.
Specifically, state representative John Cabello has done so. Under the bill HB1844, the Illinois Treasury will be able to create its own strategic bitcoin fund.
The struggle of the dollar and Bitcoin
If the document turns into a law, then the state treasurer will manage the fund. Well, the BTC purchased will be held for at least five years before being shipped, sold, realised or converted to another cryptocurrency.
The bill also calls for the state to accept gifts, grants and donations of Bitcoin from Illinois residents and government entities. This makes Illinois the first US state to consider possible voluntary donations as part of a public financial strategy.
The cryptocurrency will be stored using cold vaults similar to hardware wallets that are used solely for sending and receiving coins. The savings will also undergo regular audits and the treasurer will have to publish reports every two years. These should contain information about the current number of BTC on the wallets, their dollar equivalent and possible security risks.
Jeff Kendrick believes that the change of approach to cryptocurrency regulation in the US will be an important factor for the growth of the market in the long term. And although it may not come to the point of breaking crypto's four-year cycles, investors will still become more actively involved with the coins.
Look for more interesting stuff in our crypto chat room. Check it out.
SUBSCRIBE TO OUR CHANNEL IN TELEGRAM TO KEEP UP TO DATE.
Related posts
