Standard Chartered Predicts Bitcoin Will Stay Above $100,000 Amid Positive Market Trends
Standard Chartered Bank has expressed a bullish outlook for Bitcoin, suggesting that the cryptocurrency may never again fall below the $100,000 mark, provided favorable macroeconomic and geopolitical trends persist.
### Improving U.S.-China Trade Talks Boost Market Sentiment
Geoffrey Kendrick, head of digital assets research at Standard Chartered, highlighted the recent thaw in U.S.-China relations as a key contributor to this optimistic forecast. The easing of tensions includes promising progress in trade talks, such as the potential delay of China’s rare-earth export controls and ongoing negotiations for China to purchase substantial quantities of U.S. soybeans.
These developments have helped reduce global market uncertainty, positively influencing sectors including cryptocurrencies. As uncertainty subsides, Bitcoin’s value has strengthened, and its correlation with gold has increased. Notably, the Bitcoin-gold ratio has rebounded to pre-October 10 levels—a date marked by a significant sell-off triggered by fears of a 100% tariff on Chinese imports. Kendrick expects this ratio to climb further, interpreting it as a clear sign of declining market fear.
### Rising Bitcoin ETF Inflows Signal Renewed Investor Confidence
Another factor that underpins Standard Chartered’s positive outlook is the anticipated surge of capital flowing into Bitcoin exchange-traded funds (ETFs). Kendrick noted that over $2 billion recently exited U.S. gold ETFs, and if even a portion of that capital shifts into Bitcoin ETFs, it would indicate growing investor confidence in cryptocurrencies.
An increase in Bitcoin ETF inflows would mark a pivotal moment for the crypto market, potentially propelling Bitcoin toward new all-time highs. According to Kendrick, this could challenge the prevailing view that Bitcoin’s price movements are primarily driven by its halving cycles. Instead, ETF flows might become a more reliable indicator of Bitcoin’s future price trajectory.
### Federal Reserve Rate Cut Could Support Bitcoin’s Value
Adding to the positive outlook is the expected 25-basis-point rate cut by the U.S. Federal Reserve following the upcoming Federal Open Market Committee (FOMC) meeting. Historically, lower interest rates have favored risk assets like Bitcoin by creating a supportive investment environment.
Kendrick also pointed out that a series of earnings reports from major technology companies this week could further shape market dynamics. Should these reports reinforce optimistic sentiment, they would bolster confidence in risk assets, including cryptocurrencies.
### Conclusion
If these favorable trends continue—improving U.S.-China relations, increased ETF inflows, and accommodative Federal Reserve policies—Standard Chartered believes Bitcoin could firmly establish itself above the $100,000 threshold, marking a significant milestone in its market evolution.
https://coincentral.com/standard-chartered-predicts-bitcoin-could-stay-above-100000-amid-positive-developments/
