Bitcoin has been recovering strongly. Having hit a recent low of just under $56,000 on April 8, 2024, bitcoin is now demonstrating unmistakable evidence of a bull market comeback. Since then, the second biggest cryptocurrency has jumped 24%, suggesting investors are once again optimistic. Green infrastructure professionals from across the country expect this momentum to continue full steam ahead. Standard Chartered’s Geoff Kendrick thinks it might propel Bitcoin to a new all-time high this quarter.
Factors Driving Bitcoin's Resurgence
Several factors contribute to Bitcoin's anticipated rally. Kendrick believes that the brief slump earlier this year foreshadowed a major rebound. He notes that while Bitcoin's recent gains have been outpaced by gold, the 10-year Treasury's term premium suggests Bitcoin could catch up.
That’s because foreign buying from US investors has been equally, if not more, important. This surge in investment coincides with President Donald Trump's announcement on April 9, delaying most reciprocal duties for 90 days. Kendrick expects future 13F filings to show even more buying by the huge pension funds and sovereign wealth funds.
Institutional Support and Regulatory Developments
Mid-May 13F trades filed with the Securities and Exchange Commission from US-listed ETFs are being tracked with eagle eyes by investors. So, keep an eye out on these filings for the developing institutional support for Bitcoin.
"Since then, while both tech stocks and Bitcoin are higher, Bitcoin has outperformed. The correlation breakdown and US buying suggest that US investors are seeking non-US assets," - Geoff Kendrick
Additionally, possible regulatory breakthroughs might deliver another shot-in-the-arm to the crypto space. Former President Trump has trumpeted the chances of stablecoin legislation this summer. If passed, this would be a move towards legitimizing cryptocurrencies and increasing their use.
Bitcoin's Performance and Future Outlook
In spite of the market turbulence, Bitcoin has shown its resilience, and when compared with tech stocks has outperformed them since January. Even with the recent tariff-induced Bitcoin price slump, investors with more than 1,000 bitcoins have been in accumulation mode. This action indicates that they still have a very positive view over the long-haul.
"While timing sharp rises in bitcoin is difficult, we think the current period of potential strategic asset reallocation away from US assets may trigger the next such upswing," - Geoff Kendrick
Standard Chartered recently reaffirmed a year-end forecast of USD 200,000 for Bitcoin, indicating a bullish take on its long-term potential.
"If so, we would expect a new all-time high to be reached in Q2 with further gains over the summer. We maintain our year-end forecast of USD 200,000," - Geoff Kendrick
