Bitcoin (BTC) could surge to $130,000 within the next two months, according to Standard Chartered’s head of forex and digital assets research, Geoff Kendrick.
The prediction comes as institutional demand accelerates and market conditions stabilize following recent regulatory shifts and macroeconomic developments.
Institutional Momentum Strengthens Bitcoin’s Outlook
Kendrick highlighted that the market has entered a phase of relative stability after the U.S. Federal Reserve kept interest rates unchanged in its latest policy decision. With reduced immediate uncertainty and the next Fed decision scheduled for March 19, Bitcoin is poised for further gains.
A key driver of institutional adoption is the SEC’s decision to rescind SAB 121, a policy that previously limited financial institutions from custodying digital assets. This reversal removes a major regulatory barrier, allowing more traditional institutions to enter the Bitcoin market.
“Institutional flows into Bitcoin will continue to gather pace as a result,” Kendrick stated.
He expects BTC to test its previous all-time high of $109,000 soon, before entering a $112,000 to $130,000 range in February and March.
Market Reset Clears Excessive Leverage
Bitcoin’s recent price fluctuations have also helped clean up leveraged positions. On Monday, $1.1 billion in long Bitcoin positions were liquidated following a sell-off triggered by DeepSeek’s AI model announcement.
Kendrick believes this market shakeout has created a stronger foundation for Bitcoin’s next move upward.
AI-Driven Inflation Reduction Could Benefit Bitcoin
Another factor supporting Bitcoin’s price is the potential for artificial intelligence (AI) to lower inflation.
If AI-driven technological deflation helps reduce overall inflation, risk assets like Bitcoin could benefit, even if they are not directly tied to AI adoption.
Trump’s Crypto Executive Order Adds Uncertainty
Kendrick also commented on the recent executive order from Donald Trump directing a policy group to explore the creation of a national digital asset stockpile.
While the move signals government recognition of crypto’s importance, Kendrick noted some ambiguity in its wording.
“‘Stockpile’ rather than ‘Reserve’ sounds more like seized assets rather than purchased assets,” he explained, adding that further action will require Congressional approval, which could take time.
Despite the initial uncertainty, Kendrick believes the market has already moved past its reaction phase, setting the stage for the next big move: “Buy the dip.”
