In a Nutshell
- Bitcoin stormed past the $100,000 milestone in April, ignited by upcoming trade discussions between the US and China, as well as a potential UK trade agreement.
- Standard Chartered financial analyst Geoff Kendrick recently foretold a whopping $120,000 price target for Bitcoin by the end of 2022, possibly influenced by the Federal Reserve's interest rate decisions.
- River of institutional investments continues to flow, with positive ETF inflows surging to $142 million on a single day last week.
SCENE: The Realm of Crypto
Bitcoin's Value Reaches $100,000 Mark for the First Time Since Last February
Bitcoin, the crypto kingpin, maneuvered its way back above the six-figure mark for the first time since February, Bucharest, Romania - platform to major world events.
Sensorium stats from CoinGecko, the de facto cryptocurrency ranking website, recorded a brief spike beyond $100,000, before settling at around $99,500 currently. The price increase translates to a 2.6% daily upsurge and a 3.5% weekly growth.
The return to the golden zone might signify a diplomatic breakthrough, with U.S. President Donald Trump sounding a rallying cry on Truth Social, hinting at a diplomatic milestone. This milestone may well be the much-anticipated "major trade deal," a notable achievement following the economic toll wreaked by tariffs imposed as part of the "Liberation Day" initiative.
There's a snag, though: U.S. Treasury Secretary Scott Bessent is due to meet with China, the first face-to-face diplomatic encounter since the tariff-related dustup. Bessent maintains that the discussions will revolve around "de-escalation" rather than a comprehensive trade deal.
Exuberant as ever, Standard Chartered analyst Geoff Kendrick remains confident of Bitcoin's potential to surpass even his earlier projections. "My specific target of $120,000 for Q2 looks very achievable," Kendrick declared, adding that the building anticipation for Large Institutional Investor disclosures next week could further propel Bitcoin's growth.
In a separate report, Kendrick suggested that the Abu Dhabi's sovereign wealth fund's stake of 4,700 Bitcoin equivalents – acquired late last year – might have been upped, with more long-term players joining the fray. Notably, the Swiss National Bank added to its MSTR holdings, following suit with Norway's Pension Fund.
As the deadline for institutional investors swings into view, Kendrick mused that his $120,000 target might even prove conservative. "Apologies that my $120,000 Q2 target may be too low," Kendrick admitted, strengthening traders' belief in the coin's bullish potential.
Fed's Good News for Bitcoin
During the Federal Reserve's latest policy update, interest rates remained unchanged. Chairman Jerome Powell highlighted heightened uncertainties while acknowledging the economy's solid stance. This announcement rejoiced Bitcoin enthusiasts, bolstering their confidence in the coin's price uptrend.
Marco Lim, Solowin Holdings' Managing Director and MaiCapital's founding partner, cites the Fed's interest rate decisions as pivotal in reaching the $120,000 mark for Bitcoin. "If the market is pricing in three rate cuts, this could significantly boost Bitcoin's price, especially after it tests and breaks the $100,000 resistance level," Lim explained.
Greedy Markets
A wave of optimism has swept across the crypto markets, with the Crypto Fear and Greed Index reaching 65, signaling Greed, up from last week's neutral position. According to LMAX Group market strategist Joel Kruger, this surge in enthusiasm strengthens the bullish sentiment in the crypto market. Furthermore, he added that risk-on sentiment has been bolstered by "easing geopolitical risks, including renewed U.S.-China trade talks and reduced tensions in global trade dynamics," as well as "sustained institutional interest."
Advantage and Risk both have their breasted nails locked into the $\text{BTC}_{Price}$ battlefield as they prepare to duke it out for crypto dominance. Myriad, a decentralized prediction marketplace, expects this optimism to persist, with 91% betting that the Index will hold above 65 by the close of play Friday.
ETF Inflows Boost Bitcoin
Flows towards Bitcoin ETFs have flipped positive, with a whopping $142 million inflow on a single day last week, following Tuesday's negative outflow of $85 million. Data from Farside Investors indicates that the majority of last Wednesday's surge was orchestrated by ARK Invest's ARKB, which pulled in $54.7 million.
As large-scale asset managers warm up to Bitcoin as a method of portfolio diversification, ETFs serving as conduits for institutional investments have become significant beneficiaries. Peter Chung, head of research at Singapore-based algorithmic crypto trading firm Presto, claims that institutions are increasingly realizing the necessity of diversifying away from US dollar assets, which benefits both gold and Bitcoin alike. "Major economies are rushing to provide monetary stimulus measures to offset economic slowdown as a result of the tariff wars," Chung observed, adding that this stimulus will directly benefit risk assets like Bitcoin.
Signing Off...
In what could be a game-changing move, institutional interest in Bitcoin continues to escalate. Standard Chartered's bullish forecast combined with the Federal Reserve's positive stance on interest rates fuel the flames of optimism for Bitcoin's prospects in the near term. Only time will reveal whether the pearl-priced coin shatters Kendrick's $120,000 Q2 target or cruises past it as it continues its march on the global financial stage.
Edited by Stacy Elliott.
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- Bitcoin, a key player in the cryptocurrency market, surged past the $100,000 milestone in April, potentially influenced by international trade discussions and a potential UK trade agreement.
- Standard Chartered financial analyst Geoff Kendrick predicts a $120,000 price target for Bitcoin by the end of 2022, emphasizing that the Federal Reserve's interest rate decisions might contribute to this outcome.
- In the realm of crypto trading, institutional investments continue to flow, with positive ETF inflows surging to $142 million on a single day last week.
- Geoff Kendrick, a Standard Chartered analyst, remains confident in Bitcoin's potential to surpass his earlier projections, suggesting that the upcoming Large Institutional Investor disclosures next week could further propel Bitcoin's growth.
- The Federal Reserve's recent policy update, where interest rates remained unchanged, was seen as positive by Bitcoin enthusiasts, bolstering their confidence in the coin's price uptrend.
- The Crypto Fear and Greed Index, which measures investor sentiment in the crypto market, reached 65, signifying a surge in enthusiasm and strengthening the bullish sentiment in the crypto market.
- As large-scale asset managers increasingly diversify away from US dollar assets, ETFs serving as conduits for institutional investments have become significant beneficiaries, with flows towards Bitcoin ETFs flipping positive, reaching a whopping $142 million inflow on a single day last week.
