Standard Chartered is optimistic about Bitcoin reaching a new record high, targeting $120,000 in the second quarter. The bank is supported by various factors such as increased activity in Bitcoin ETFs and major companies, as well as a rise in institutional adoption in the US.

Geoff Kendrick, the Head of Digital Asset Research at Standard Chartered, highlighted the potential for Bitcoin to hit a new peak due to inflows into ETFs, Strategy's investment approach, and institutional engagement. Kendrick emphasized the significance of capital flows in the current bullish trend, citing a substantial increase in ETF inflows over the past weeks leading to a rise in Bitcoin's price from $84,000 to $99,000.

Moreover, Kendrick underscored Strategy's continuous accumulation of Bitcoin, showing a notable increase in their holdings. He mentioned upcoming 13F filings from ETFs and Strategy to provide more insights into their investment activities. Kendrick also pointed out the increasing participation of major institutions like Abu Dhabi's sovereign wealth fund, the Swiss National Bank, and Norges Pension Fund, signaling growing acceptance of Bitcoin in traditional portfolios.

Not only institutions but also local US governments are getting involved in Bitcoin, with states like Arizona, New Hampshire, Texas, and Oregon progressing on Bitcoin reserve legislation. Kendrick is positive about Bitcoin's price outlook, hinting that his forecast of $120,000 in Q2 might be conservative considering the strong ETF inflows, Strategy's accumulation strategy, institutional engagement, and supportive local policies in the US.