Bitcoin BTC/USD could surpass previous forecasts and hit new highs sooner than expected, according to Standard Chartered's Head of Digital Assets Research, Geoffrey Kendrick, who acknowledged Monday that his earlier second-quarter price target of $120,000 may be too conservative.

What Happened: In a note sent to clients, Kendrick revised his tone sharply, stating, "I apologize that my $120,000 Q2 target may be too low."

He cited accelerating inflows into U.S. spot Bitcoin ETFs, aggressive institutional buying and shifting global investor sentiment as key reasons for the bullish outlook.

"The dominant story for Bitcoin has changed again," Kendrick wrote. "It is now all about flows. And flows are coming in many forms."

Over the past three weeks alone, U.S.-listed spot Bitcoin ETFs have absorbed $5.3 billion in inflows.

After adjusting for hedge fund shorts reported by the CFTC, Kendrick estimates net real flows stand at over $4 billion, a figure he says underpins strong upward pressure on price.

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Why It Matters: Strategy MSTR continues to lead institutional accumulation.

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The firm now holds 555,450 Bitcoins, roughly 2.6% of the maximum future supply.

Kendrick noted that if Strategy follows through on its proposed $84 billion capital raise, it could eventually control more than 6% of all Bitcoins that will ever exist.

Public institutions are also entering the fray.

New Hampshire recently passed legislation to create a Strategic Bitcoin Reserve, and sovereign wealth funds like Abu Dhabi's and central banks such as the Swiss National Bank and Norges Bank are believed to be increasing their exposure through ETF holdings and shares in Strategy.

Kendrick previously linked Bitcoin's rally to strategic reallocation out of U.S. assets, but said the narrative has since evolved.

"This is no longer just about macro hedging or correlation with tech stocks—this is pure demand," he noted.

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