U.S.-UK Trade Deal Fuels Bitcoin’s Rocket Ride—Because Traditional Markets Needed More Volatility

Bitcoin surges 12% overnight as trade optimism triggers institutional FOMO.

Macro Winds Blow Crypto’s Way

The dollar weakens on the trade news—and as usual, BTC eats its lunch. Hedge funds now piling into derivatives like it’s 2021 all over again.

’Safe Haven’ Narrative Gets a Boost

Gold’s boring. Bonds are broken. Suddenly, that ’digital gold’ marketing starts looking less ridiculous to Wall Street suits.

Watch the Fed’s next move. If rates stay flat, this rally’s got legs. If not? Well, at least the memecoins will keep the circus going.

Price Target Insights

Geoffrey Kendrick, the head of digital assets at Standard Chartered, expressed that Bitcoin’s price targets remain lower compared to previous estimates, indicating that current figures are not bold enough. He suggested that Bitcoin’s ascent might gain momentum, driven by influential market dynamics and supportive economic conditions.

“The $120,000 target I set for Q2 might be insufficient.”

Initially setting a year-end target of $120,000 for Bitcoin$103,360 by 2025, Kendrick now sees the possibility of reaching $200,000 by year-end in his updated remarks. Market dynamics and investor behaviors seem to support this anticipation, highlighting a significant positive shift in outlook.

“We foresee supporting factors pushing BTC to $120,000 around Q2, with further growth through summer.”

Kendrick emphasized the transition in Bitcoin’s growth narrative, from its correlation with risk assets to strategic asset allocation and large-scale cash flows. This marks a shift in market expectations, signaling a changing economic environment for digital assets.

“Previously, risk asset correlation was forefront, now emphasis is on cash flows.”

ETF Investments and Market Dynamics

U.S. spot Bitcoin ETFs reportedly received $1.6 billion in net inflows this May. BlackRock’s largest managed fund maintains investor interest despite a singular significant net outflow day, showcasing continued strong investment interest in the sector.

It is noted that U.S. ETFs hold 5.6% of the total bitcoin supply, global ETFs 6.4%, and public companies 3.4%. This limited supply competes with growing investor demand, fostering intense market dynamics.

Market developments and the rise in ETF investments provide critical signals for investors in the digital asset market. By following these data, investors can update their strategies and potentially capitalize on expected price surges, underscoring the importance of staying informed and adaptable.