Stanchart reconfirms Bitcoin’s year-end forecast of $20,000 as US government shutdowns become a tailwind

Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered, reaffirmed his $200,000 year-end Bitcoin (BTC) price target on October 2nd.

According to Kendrick, a fresh influx of ETFs and US government closures could drive the code to even higher prices in the coming weeks.

In a note to clients, Kendrick said Bitcoin is poised to break past its all-time high within days, potentially reaching $135,000 in the coming weeks, a little later than previous predictions.

Kendrick emphasized that the net inflow into Bitcoin ETFs is nearly $50 billion, and three months are still a year.

Shutdown is a catalyst

Kendrick claimed that the current shutdown is heavier than the 2018-2019 episode, when Bitcoin had little response.

He said this year that assets are traded closely with “US government risks,” reflected in Treasury’s term premiums and positioned them as profitable as the political crisis deepens.

The multi-tier of the forecast market shows that the shutdown is 60% likely to last 10-29 days, Kendrick said it is likely to bolster Bitcoin prices throughout the period.

ETF flow and market situation

Gold ETFs have recently outperformed the Bitcoin ETF inflow, but Kendrick predicted that this trend will soon turn back in favour of digital assets. Influx has been rising over the past week and is expected to continue.

According to Kendrick, demand for Bitcoin ETFs, coupled with an increased correlation between Crypto and macroeconomic risk indicators, is strengthening its role as a mature financial asset.

He wrote:

“We hope that by the end of the year at least $2 billion will allow for a year-end forecast of $200,000.”

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