Bitcoin (BTC) soared past the $100,000 mark on Thursday (May 8), hitting its highest level since February this year. Analysts attribute this rally to a resurgence in global risk appetite, coinciding with the ongoing rebound of U.S. stocks from April lows.
Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered, recently stated that his earlier prediction of Bitcoin reaching $120,000 now appears "highly achievable"—and might even be "too conservative."
"The dominant narrative around Bitcoin has shifted again. Initially, it was correlated with risk assets...then became a tool for strategic reallocation from U.S. assets. Now, everything revolves around capital flows—money is pouring in through multiple channels."
Kendrick highlighted that U.S. spot Bitcoin ETFs have attracted $5.3 billion in inflows over the past three weeks, signaling accelerating institutional participation.
Institutional Adoption Driving the Rally
Key examples of large investors allocating to Bitcoin include:
- Strategy Inc. aggressively increasing Bitcoin holdings.
- Abu Dhabi’s sovereign wealth fund holding BlackRock’s IBIT Bitcoin ETF.
- The Swiss National Bank purchasing shares of Strategy (a proxy for BTC exposure).
👉 Why Bitcoin ETFs Are Fueling the Next Crypto Boom
Antoni Trenchev, Co-Founder of Nexo, noted:
"Bitcoin didn’t just reclaim $100K for the first time in three months—it solidified its status as the ‘comeback king,’ especially amid improving U.S. trade outlooks."
However, Trenchev cautioned that Bitcoin must break January’s $109,350 peak** to confirm a new bull cycle. Over the next two months, he expects **consolidation between $70K–$109K.
Risks and Market Correlations
- Volatility Warning: Leah Wald, CEO of SOL Strategies, emphasized Bitcoin remains a high-risk asset with amplified swings driven by sentiment.
- Risk-Asset Parallels: Analysts observe Bitcoin increasingly trading like U.S. tech stocks, as institutional inflows expose it to similar market risks.
FAQs
1. What’s driving Bitcoin’s price surge?
Capital inflows from ETFs, institutional adoption, and macroeconomic shifts are key catalysts.
2. Is $120K a realistic target for Bitcoin?
Standard Chartered’s analysis suggests it’s achievable—possibly even conservative if inflows persist.
3. Should investors be cautious?
Yes. Bitcoin’s volatility and correlation to traditional markets warrant careful risk management.