Bitcoin (BTC) could increase to $ 130,000 in the next two months, according to the head of Forex and Digital Active Research from Standard Chartered, Geoff Kendrick. The prediction comes against the background of increasing the institutional demand and stabilizing the market conditions after recent regulatory changes and macroeconomic developments.
The institutional momentum strengthens the Bitcoin prospects
Kendrick stressed that the market has entered a relative stability phase after the US Federal Reserve has maintained the interest rates in the latest monetary policy decision. With an immediate reduced uncertainty and the next decision of FED scheduled for March 19, Bitcoin is prepared for additional earnings. A key factor of institutional adoption is the SEC decision to withdraw SAB 121, a policy that previously limit the financial institutions from keeping in active digital custody. This reversal eliminates a major regulatory barrier, allowing several traditional institutions to enter the Bitcoin market.
«Institutional flows to Bitcoin will continue to gain a result,» Kendrick said.
It expects the BTC to test soon the previous level of its maximum historical $ 109,000, before entering a period of $ 112,000 to $ 130,000 in February and March.
Market reset eliminates excessive lever
Recent fluctuations in Bitcoin price have also contributed to cleaning positions with Levier. On Monday, long positions of Bitcoin worth $ 1.1 billion were liquidated following a sales determined by the ad model Ai Deps. Kendrick believes that this market adjustment has created a stronger base for the next upward movement of Bitcoin. Another factor that supports the price of bitcoin is the potential for artificial intelligence (AI) to reduce inflation. If the technological deflation caused by AI helps reduce general inflation, risk assets such as Bitcoin could benefit, even if they are not directly related to AI adoption.
Trump's executive order on Crypto adds uncertainty
Kendrick also commented on Donald Trump's recent executive order, which directs a group of policies to explore the creation of a national stock of digital assets. Although the movement reports the recognition of Crypto's importance by the government, Kendrick mentioned some ambiguities in forms.
«» Stock «rather than» reserve «sounds more confiscated assets than to be purchased,» he explained, adding that additional actions will require the approval of the Congress, which could take.
Despite the initial uncertainty, Kendrick believes that the market has already passed the reaction phase, preparing the scene for the following important movement: «Buy the DIP.»