Bitcoin Forecast May Be Too Low After Record Short Squeeze

Standard Chartered's Geoffrey Kendrick is reevaluating his $100,000 year-end forecast for Bitcoin, suggesting it may be too conservative. The analyst attributes this shift to record short liquidations and renewed demand from long-term investors.

The sharp recovery has led to a significant short-liquidation event, with Coinglass data showing BTC short liquidations approaching $1.44 billion during the Aug. 19-21 rally. This is the largest daily total displayed in the 90-day chart, and Kendrick connects it to growing upside risk for his year-end target.

The analyst also notes that institutional demand has strengthened, with U.S. spot Bitcoin exchange-traded funds (ETFs) returning to net inflows during the rally. The funds have collected approximately $1.92 billion over five sessions, with Blackrock's IBIT accounting for $502.99 million of the daily total on Aug. 20.

Kendrick describes Bitcoin as a 'Giffen good' for long-term investors, explaining that prices tend to rise when demand increases. He expects this pattern to continue, drawing more attention and capital to the asset.