In a recent report, Standard Chartered raised its Bitcoin price projections, anticipating that the cryptocurrency could reach $130.000 by March, driven by the SEC’s decision to rescind SAB 121, bullish market trends and growing institutional interest.
This prediction, shared by Geoff Kendrick, head of FX and digital asset research at Standard Chartered, is based on a number of factors considered bullish for the price of Bitcoin and the cryptocurrency market in general.
In a recent note, Kendrick included the Securities and Exchange Commission's (SEC) decision to rescind SAB 121 regulations as one of the main factors that could drive the price of Bitcoin higher. As he explained, this repeal will make it easier for traditional financial institutions to hold cryptocurrencies and digital assets, which in turn could significantly increase institutional inflows into the market.
Kendrick further explained that the sustained growth of institutional interest in Bitcoin and the current bullish trends in the market are elements that are strengthening this projection.
In a context where the market-leading cryptocurrency has shown notable volatility, Standard Chartered's outlook highlights renewed optimism about Bitcoin's future as an investment asset and store of value.
Repeal of SAB 121 will boost institutional participation in Bitcoin and cryptocurrencies
The SEC's repeal of SAB 121 has been seen as a crucial change that could transform the landscape for Bitcoin and digital assets in the United States and around the world. According to Kendrick, this change will allow traditional financial institutions to manage digital assets more easily, which could translate into a significant increase in institutional inflows.
In the note, Kendrick stated that institutions will now be able to hold Bitcoin without the previous restrictions, stressing that the regulator's new approach is facilitating easier access that could encourage pension funds and other entities to diversify their portfolios with cryptocurrencies. This prospect, according to the expert, would generate greater demand and a boost to the BTC price, which is trading at around $106.000, with an increase of almost 4% in the last few hours.
Source: CoinMarketCap
Previous experience with other assets suggests that when institutions enter the market, they tend to attract more capital, which can result in accelerated growth in the price of the asset, in this case, Bitcoin. Furthermore, this regulatory change by the SEC could provide greater confidence to both investors and users, creating a more favorable environment for the growth of the crypto market in general.
Other factors that will boost Bitcoin, according to Standard Chartered
In addition to the repeal of SAB 121, other factors are also influencing Standard Chartered's bullish forecast.
Kendrick pointed out the Current stance of the Federal Reserve, which has decided to keep interest rates unchanged until its next meeting in March, as another bullish factor for BTC. This monetary policy by the Fed could facilitate a favorable environment for riskier investments like Bitcoin.
Kendrick also mentions that the technological deflation facilitated by artificial intelligence (AI) could contribute to the rise in the price of Bitcoin in the coming months.
Bitcoin continues to see a sustained increase in demand
Despite the volatility experienced in recent weeks, demand for Bitcoin continues to grow.
Exchange-traded funds (ETFs) have seen record inflows, according to a recent report from CoinShares earlier this week. The investment firm highlighted that cryptocurrency-based funds benefited from the executive order signed by Donald Trump aimed at regulating the crypto industry and creating a strategic store of value denominated in digital assets. Thanks to this, investment funds saw massive weekly inflows of $1.900 billion, with Bitcoin being the main beneficiary.
This surge in institutional demand supports the narrative of Bitcoin as a solid asset for long-term investment and store of value. Moreover, while some aspects of Trump’s recent executive order on cryptocurrencies may seem vague, it is expected to provide greater confidence to investors and market users.
All of this added confidence could support Bitcoin price growth in the near future and, taken together, suggests that the cryptocurrency market is well positioned to experience significant growth in the coming months and years.
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