StanChart reaffirms $200k year-end projection for Bitcoin as US gov shutdown becomes tailwind

Commonplace Chartered’s head of digital belongings analysis, Geoffrey Kendrick, reaffirmed his year-end Bitcoin (BTC) value goal of $200,000 on Oct. 2.

In keeping with Kendrick, recent ETF inflows and the U.S. authorities shutdown might drive the crypto to additional highs within the weeks forward.

In a word to shoppers, Kendrick stated Bitcoin is poised to interrupt previous its all-time excessive inside days and will attain $135,000 within the coming weeks, a bit later than his earlier forecast.

Kendrick highlighted that internet inflows into Bitcoin ETFs stand at practically $50 billion, with three months nonetheless to go within the 12 months.

Shutdown is a catalyst

Kendrick argued that the present shutdown carries extra weight than the 2018–2019 episode, when Bitcoin confirmed little response.

He famous that this 12 months, the asset has traded intently with “U.S. authorities dangers,” mirrored in Treasury time period premiums, positioning it to learn as political gridlock deepens.

Prediction market Polymarket signifies a 60% chance the shutdown will final 10 to 29 days, a length Kendrick stated would possible bolster Bitcoin costs all through the interval.

ETF flows and market situations

Whereas gold ETFs have lately outpaced Bitcoin ETF inflows, Kendrick predicted that the development will quickly reverse in favor of the digital asset. Inflows have been ramping up over the previous week and are anticipated to proceed.

In keeping with Kendrick, the demand for Bitcoin ETFs, mixed with the crypto’s rising correlation with macroeconomic threat indicators, reinforces its function as a maturing monetary asset.

He wrote:

“I might anticipate a minimum of one other $20 billion by year-end, a quantity which might make my $200,000 year-end forecast potential.”

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