In a striking new market outlook, Geoffrey Kendrick of Standard Chartered has predicted that Bitcoin will soon surpass its previous all-time high, potentially reaching between $112,000 and $130,000 by February and March 2025. This bullish forecast comes amid shifting market dynamics, regulatory clarity, and growing institutional interest—factors that are collectively reshaping the cryptocurrency landscape.
Kendrick’s analysis underscores a pivotal moment for digital assets, as macroeconomic trends and central bank behaviors begin to align with long-held crypto narratives. With Bitcoin increasingly viewed not just as a speculative asset but as a strategic store of value, the stage may be set for a significant price breakthrough.
👉 Discover how market shifts could trigger Bitcoin’s next surge.
Market Correction Clears Path for Stronger Momentum
Earlier in the week, Bitcoin experienced a sharp pullback, sparked by market concerns over the rise of low-cost artificial intelligence models—dubbed "fear of DeepSeek" by analysts. This sentiment led to the liquidation of approximately $1.1 billion in long positions, a move that, paradoxically, may have strengthened the foundation for future gains.
According to Kendrick, such corrections play a crucial role in improving overall market positioning. By flushing out overleveraged traders and speculative noise, these pullbacks create healthier conditions for sustained upward movement. The recent dip, he argues, was not a sign of weakness but a necessary reset.
"When excessive leverage is removed from the system, it reduces the risk of a cascading sell-off later. We’re now seeing a more resilient market structure."
This improved positioning is further supported by broader macro trends. If cheaper AI technologies help moderate inflation—even marginally—risk assets like Bitcoin stand to benefit. Unlike AI-related equities, Bitcoin is uncorrelated with tech sector valuations, making it an attractive hedge during periods of technological disruption and monetary uncertainty.
Regulatory Clarity Fuels Institutional Adoption
One of the most significant catalysts identified by Kendrick is the evolving regulatory environment. While recent political messaging—particularly from former U.S. President Donald Trump’s camp—was initially underwhelming due to the use of the term “stockpile” instead of “strategic reserve,” there were still meaningful developments.
The repeal of SEC Staff Accounting Bulletin (SAB) 121 has been a game-changer. This policy change allows banks and custodians to remove crypto assets from their balance sheets when held on behalf of clients, significantly reducing regulatory and accounting burdens. As a result, financial institutions are now more willing to offer crypto services, paving the way for greater institutional inflows.
“This is a turning point,” Kendrick emphasized. “With SAB 121 out of the way, we’re likely to see accelerated adoption across traditional finance.”
Central Banks Eyeing Bitcoin Reserves
Perhaps the most compelling element of Kendrick’s forecast is the growing likelihood of central banks adding Bitcoin to their reserves.
The Czech National Bank (CNB) is reportedly preparing to vote on allocating up to 5% of its $145 billion reserves to Bitcoin. If approved, this would translate into roughly 69,000 BTC at current prices—an acquisition equivalent to about 19% of the total net inflow into U.S. Bitcoin ETFs over the past 12 months.
This move could set a powerful precedent. Should the CNB take the lead, other central banks—particularly those seeking diversification away from traditional fiat holdings—may follow suit.
Kendrick also pointed to the Swiss National Bank as another potential early adopter. Given Switzerland’s long-standing reputation as a global financial hub with strong ties to blockchain innovation, such a move would carry substantial symbolic and economic weight.
👉 See how global financial shifts are boosting digital asset demand.
ETF Inflows Signal Growing Mainstream Acceptance
The success of spot Bitcoin ETFs in the United States continues to be a major driver of market confidence. Since their launch just over a year ago, these funds have attracted $38.5 billion in net inflows, demonstrating strong and sustained investor appetite.
While retail participation remains significant, the real story lies in institutional adoption. Pension funds, asset managers, and family offices are increasingly allocating capital to Bitcoin through regulated vehicles, reducing counterparty risk and simplifying compliance.
Kendrick believes this trend will accelerate in 2025, especially as more countries consider launching their own ETF products and regulatory frameworks mature globally.
Litecoin ETF Speculation Adds Momentum
While Bitcoin remains the primary focus, Kendrick briefly touched on rising speculation around a potential Litecoin ETF. News of such a proposal sent Litecoin’s price soaring nearly 20% in a single session—an indication of how regulatory developments can quickly impact broader market sentiment.
Although no formal approval has been announced, the mere possibility underscores growing legitimacy for major cryptocurrencies beyond Bitcoin. It also reflects increasing regulatory comfort with digital asset products.
Key Takeaway: Buy the Dip, Aim for New Highs
Kendrick views the current phase as a classic “buy the dip” opportunity. With technical resistance around $109,000—the level briefly touched after Trump’s election—now within sight, a breakout appears imminent.
“Once we clear $109K, I expect Bitcoin to enter a new range between $112,000 and $130,000 by February or March,” he said.
This projection is not based on hype but on converging structural forces: improved market health, regulatory progress, institutional adoption, and potential central bank demand.
Frequently Asked Questions (FAQ)
Q: What is driving Standard Chartered’s bullish Bitcoin forecast?
A: The forecast is based on multiple factors: improved market positioning after recent corrections, regulatory easing (especially the repeal of SAB 121), growing institutional interest via ETFs, and potential central bank purchases of Bitcoin.
Q: Could central banks really buy Bitcoin?
A: Yes—there are active discussions underway. The Czech National Bank is considering allocating 5% of its reserves to Bitcoin, which would amount to nearly 69,000 BTC. If successful, it could inspire similar moves globally.
Q: How might AI affect Bitcoin’s price?
A: If low-cost AI helps reduce inflationary pressures at the margin, risk assets like Bitcoin could benefit. Importantly, Bitcoin is not directly tied to AI technology, making it a pure-play hedge against macroeconomic shifts.
Q: What role do ETFs play in Bitcoin’s price growth?
A: Spot Bitcoin ETFs have brought legitimacy and accessibility to mainstream investors. With over $38.5 billion in net inflows since launch, they’ve become a major source of sustained buying pressure.
Q: Is another correction likely before Bitcoin hits $130K?
A: Volatility is inherent in crypto markets. While short-term dips are possible—even likely—they may present strategic entry points rather than signs of reversal.
Q: What happens if a Litecoin ETF is approved?
A: Approval would signal expanding regulatory acceptance of cryptocurrencies beyond Bitcoin. It could boost investor confidence across the entire digital asset ecosystem.
👉 Prepare for the next leg of the bull run—start your journey today.