Bitcoin Price Bounces, Signaling Potential for Continued Growth

Standard Chartered projects Bitcoin (BTC) to reach $150,000 by late 2024 due to the anticipated inflow of $50B to $100B from spot BTC ETF flows. Furthermore, the bank's head of digital assets research anticipates that institutional investors could allocate up to 20% of their gold holdings to Bitcoin.

Bitcoin's Price Recovery Signals Potential for Continued Growth in the Midterm

Amidst the ongoing price consolidation, Bitcoin (BTC) has maintained a steady trajectory above the $66,000 mark, signaling a potential for further growth in the midterm. According to industry experts, a favorable macro environment and the maturation of spot BTC exchange-traded funds (ETFs) could serve as catalysts for upward price movement.

Positive Macroeconomic Outlook

Nico Cordeiro, Chief Investment Officer of digital asset hedge fund Strix Leviathan, believes that the Federal Reserve's dovish monetary policy, despite inflationary pressures, will create a favorable environment for risk assets, including both technology stocks and cryptocurrencies. "It's a good set-up for risks," he stated.

ETF Maturity as a Catalyst

Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, emphasizes the significance of spot BTC ETF flow maturity. He anticipates inflows ranging from $50 billion to $100 billion within the next 18-24 months, based on the historical performance of gold ETFs. "The price of gold multiplied by 4.3 times, that could get us to the $150,000 – $200,000 range," Kendrick noted.

Institutional Adoption and Allocation

Kendrick also projects an increased allocation towards Bitcoin by institutional investors, suggesting a potential shift in the traditional gold-to-Bitcoin ratio. "Institutional investors' allocation to gold versus BTC could hit 80% gold and 20% Bitcoin," he stated.

Technical Analysis and Long-Term Outlook

While Bitcoin remains within a price range between $60,000 and $71,000, market analysts anticipate a breakout to signal further bullish momentum. However, market cycle analyst Rekt Capital suggests that extended consolidation could prolong the current bull market into Q3 2025.

Quantitative Tightening and BTC Price

BitMEX founder Arthur Hayes predicts that quantitative tightening (QT), expected to commence in May, will alleviate the downward pressure on Bitcoin's price. "After May 1st, the pace of QT declines, and Yellen gets busy cashing checks to jack up asset prices," he stated.

Conclusion

The current market conditions and expert insights suggest a potential for Bitcoin to extend its upward trajectory in the midterm. A favorable macro environment, the maturation of spot BTC ETFs, and increased institutional adoption could drive price appreciation. However, the possibility of extended price consolidation highlights the importance of a decisive breakout above the resistance level to confirm further bullish sentiment.