- A Standard Chartered Bank executive has predicted that Bitcoin could bounce back to reach a new all-time-high price at $125k before the year ends.
- His prediction is based on three main factors: the possible removal of Staff Accounting Bulletin-121 (SAB-121), the change in the US political climate, and macroeconomic factors.
Bitcoin (BTC) recently breached a crucial resistance level at $99k to hit $104k for the first time in its 15-year history. However, this price was not sustainable as it plunged to $98k at press time after declining by 4% on its 24-hour price chart. Meanwhile, multiple analysts, including an executive of Standard Chartered Bank, expect a rebound to turn this historic level into reliable support.
According to Geoff Kendrick, the global head of digital assets research at Standard Chartered, Bitcoin could hit $125k by December 31 and continue to reach $200k. Fascinatingly, this appears a conservative prediction compared to the staggering $500k estimation by the Chief Investment Officer for exchange-traded fund provider Bitwise Matt Hougan.
Analyzing Kendrick’s Prediction
Justifying his prediction, Kendrick highlighted three key factors that could fuel this significant movement. The first is the potential removal of Staff Accounting Bulletin-121 (SAB-121). It is important to note that the SAB-121 exists as a rule that prohibits banks from holding cryptos for clients.
Secondly, the Standard Chartered Bank executive pointed out that the leadership changes at the US Securities and Exchange Commission (SEC) could be another driving factor. As we formerly reported, SEC chair Gary Gensler announced that he would be stepping down on January 20, 2025. Meanwhile, former SEC Commissioner Paul Atkins has been appointed to take over the position. In the crypto industry, Atkins is well known as an active advocate who consistently questioned the SEC’s lawsuit against Ripple.
Finally, Kendrick turned to macroeconomic factors after highlighting that a third crypto ETF could be announced soon. According to him, the 10-year yield has surpassed the two-year yield for the first time, and this could certainly push the price up.
You’ll probably see more ETFs relatively quickly. Solana, I would say, would be the most likely third one. 10-year yields are above two-year yields for the first time in several quarters now, and that’s a marginally positive story within that as well. You’ve got inflation expectations up, a bit, whereas real yields are down a bit.
Other Analysts Jump Into the Bitcoin Discussion
For Benchmark Company analyst Mark Palmer, Bitcoin could hit $225k by 2026. According to him, the removal of bad actors like FTX founder Sam Bankman-Fried and the potential growth of the industry under the new US administration could be the key tailwind.
Assessing another analysis by TradingView, we discovered that another breach of the $99k level could see Bitcoin hitting between $115,000–$117,000 zone.
However, investors were advised to closely monitor the market for changes in sentiment.
This setup aligns with broader market expectations, signaling significant upside potential. As always, market conditions should be monitored closely for any changes in structure or sentiment. Let us know your thoughts on this view and how you’re approaching the current Bitcoin landscape.
Currently, Bitcoin’s daily trading volume is down, with $120 billion changing hands. Also, BTC’s dominance has declined to 54% as holders reach 50,708,169.
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