According to Standard Chartered analyst Jeff Kendrick, bitcoin's fall earlier this year will trigger a new rally to $120,000 this quarter amid investors' strategic exit from US assets.
Despite the disappointing performance of the major cryptocurrency at the beginning of this year, Kendrick cited three reasons that support his point of view.
First, economic uncertainty creates a favorable environment for crypto assets. US tariffs and threats to the Fed's independence have weakened confidence in the US dollar and Treasuries, increasing the popularity of alternatives for investors.
Second, the bank's analysis indicates bitcoin buying has begun since President Donald Trump announced a 90-day delay in the implementation of most reciprocal tariffs on April 9.
Additionally, the US Securities and Exchange Commission's review of ETF applications is fueling interest in a possible increase in institutional support for bitcoin. As Kendrick expects, the new data will show increased buying by pension funds and sovereign wealth funds.
Standard Chartered keeps its year-end forecast for the bitcoin at $200,000.