Greetings and welcome to the US Crypto News Morning Briefing, your go-to source for the latest and most significant updates in the crypto world for the day ahead.
Sit back with a cup of coffee as we delve into Standard Chartered's predictions regarding Bitcoin (BTC) prices. The bank suggests that the price of Bitcoin could potentially reach $500,000 as global institutions opt for Strategy's MSTR stock as an indirect means to gain exposure to Bitcoin.
In the realm of crypto news for the day, Standard Chartered's audacious Bitcoin forecast is making waves. Bitcoin was priced at $105,178, reflecting a modest 2.27% increase in the last 24 hours. Notably, the market capitalization of the pioneering cryptocurrency has surged to a record high of $2.09 trillion.
Several macro factors, including PBOC rate cuts and Moody's US credit downgrade, are contributing positively. Nonetheless, experts attribute much of Bitcoin's value surge to increasing interest from institutional investors. The introduction of Bitcoin ETFs, which allow players in Traditional Finance (TradFi) to gain indirect exposure to BTC, is a key driver of institutional fascination.
Moreover, institutions are getting indirect access to Bitcoin through Strategy’s MSTR stock. Recent reports from US Crypto News indicate that Strategy (formerly MicroStrategy) possessed 576,230 BTC as of May 19. With a substantial amount of Bitcoin on its balance sheet, Strategy’s MSTR stock price moves in tandem with Bitcoin's price fluctuations.
Analysts point out that this correlation is due to Bitcoin acting as the base layer while MSTR operates as a distinct vehicle with its own set of risks, mechanics, and rewards.
Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, remains optimistic about Bitcoin's trajectory. Kendrick projects that Bitcoin is on track to reach $500,000 before the conclusion of Trump's second term, attributing this surge to heightened institutional adoption, particularly through indirect exposure via MicroStrategy’s MSTR shares.
Standard Chartered's bullish stance is backed by new Q1 2025 13F filings from the US SEC, showing a rise in allocations to MSTR by various global sovereign and quasi-sovereign entities. Kendrick believes that as more investors gain access to Bitcoin and its volatility decreases, portfolios will naturally gravitate towards an optimal Bitcoin exposure level.
Despite a slight decrease in direct Bitcoin ETF holdings overall, entities have progressively increased their exposure through MSTR, which Kendrick describes as a "Bitcoin proxy" witnessing upward momentum, unlike the Bitcoin ETF landscape.
In conclusion, the data reinforce Standard Chartered’s belief that institutional and sovereign flows, both direct and indirect, will play a vital role in propelling Bitcoin's ascent to $500,000 in the near future.