Bitcoin the world’s biggest cryptocurrency is making headlines again. In May 2025 Standard Chartered’s analyst Geoffrey Kendrick apologized for his earlier prediction that Bitcoin would hit $120000 by the second quarter (Q2) of 2025. He now says this target might be too low. Why? Because big investors called “whales” are buying up Bitcoin and people are moving their money away from traditional U.S. investments into assets like Bitcoin.
What’s Driving Bitcoin’s Rise?
Bitcoin’s price has been climbing fast. As of May 2025 it’s trading close to $100000 with some days hitting as high as $99882. Kendrick who leads digital asset research at Standard Chartered points to a few key reasons why Bitcoin could keep going up.
1. Whale Accumulation
Whales are people or groups who own a lot of Bitcoin usually more than 1000 coins. These big players have been buying Bitcoin even when the price dips like during recent market worries about tariffs or banking issues. When whales buy it reduces the amount of Bitcoin available for others which can push the price higher. Kendrick says whales have been active during major Bitcoin rallies in the past like when Bitcoin ETFs were approved or during Trump’s election win. Their buying spree now suggests they believe Bitcoin’s price will climb even more.
2. Moving Away from U.S. Assets
Another big reason is that investors, especially in the U.S. are pulling money out of traditional investments like stocks and bonds. Instead they are putting it into assets like Bitcoin. Kendrick says this “strategic asset reallocation” is a major driver. For example after President Trump announced a temporary pause on tariffs for countries like Mexico and Canada in April 2025 Bitcoin started outperforming other investments including tech stocks. Even Asian investors are joining this trend choosing Bitcoin over U.S. based securities.
3. Bitcoin ETFs and Gold Reallocation
Bitcoin Exchange Traded Funds (ETFs) are a big deal. These funds let regular investors buy Bitcoin without directly owning it and they have been pulling in huge amounts of money. In just one week Bitcoin ETFs saw over $1.7 billion in inflows with one day alone bringing in $912 million. At the same time money is flowing out of gold ETFs showing that investors see Bitcoin as a better “safe haven” asset. Kendrick says Bitcoin is a stronger hedge against financial system risks because it’s decentralized unlike gold which is better for geopolitical risks.
4. U.S. Treasury Term Premium
Kendrick also points to a financial indicator called the U.S. Treasury term premium which is at a 12-year high. This measures the extra return investors get for holding longterm U.S. bonds compared to short term ones. Historically when this premium is high Bitcoin’s price tends to rise. It signals that investors are looking for alternatives to traditional U.S. investments and Bitcoin is one of those alternatives.
Why $120000 Might Be Too Low
Kendrick’s original forecast of $120000 for Q2 2025 was bold but he now thinks Bitcoin could go even higher. Here’s why:
- Institutional Money Is Pouring In: Big players like Abu Dhabi’s sovereign wealth fund, Mubadala, invested over $400 million in BlackRock’s Bitcoin ETF. Companies like Strategy (formerly MicroStrategy) are also doubling down on Bitcoin. This was not fully factored into Kendrick’s earlier prediction.
- Bitcoin’s Changing Role: At first Bitcoin moved in sync with risky assets like tech stocks. Then, it became a way to hedge against U.S. assets. Now, it’s all about “flows”—money coming into Bitcoin from many sources, including institutions and everyday investors.
- Historical Trends: Bitcoin often sees big price jumps in the spring, especially in April, with an average gain of 34.7% based on past data. If this happens again, Bitcoin could easily surpass $120,000 by Q2.
Kendrick still believes Bitcoin could hit $200000 by the end of 2025 and some analysts even predict prices as high as $210000. With Bitcoin already close to $100000 these targets don’t seem as far-fetched as they once did.
What Could Hold Bitcoin Back?
While the outlook is exciting there are risks. Bitcoin’s price can be volatile meaning it can drop just as fast as it rises. For example after hitting $109114 in January 2025 it fell back to $97000 due to profit-taking. Events like trade tensions changes in government policies or security issues at crypto exchanges (like the Bybit breach in February 2025) could also hurt Bitcoin’s price. Still the overall trend seems upward especially with growing institutional support and global interest.
Should You Buy Bitcoin Now?
Kendrick says “now” is a good time to buy Bitcoin before it takes off again. He admits that predicting exact price breakouts is tricky, but the signs—whale buying, ETF inflows and asset reallocation—point to a big move soon. However investing in Bitcoin carries risks and you should only invest what you can afford to lose. Always do your own research before jumping in.
What’s Next for Bitcoin?
Standard Chartered’s apology for the $120000 target shows how fast Bitcoin’s story is changing. From a risky asset to a hedge against U.S. investments and now a magnet for global capital Bitcoin is becoming a mainstream choice for investors. With whales stocking up institutions pouring in money and macroeconomic factors like the U.S. Treasury term premium in its favor Bitcoin could easily surpass $120000 in Q2 2025 and aim for $200000 by year end.
The road to 2025 will likely be bumpy but for Bitcoin fans the future looks bright. Whether you are an investor or just curious keep an eye on Bitcoin it’s shaping up to be a wild ride.
Disclaimer: This blog is for informational purposes only and not financial advice. Always research thoroughly before investing.