Sou Hu Cai Jing·2025-10-11 02:45Core Viewpoint - The article discusses the contrasting perspectives in the cryptocurrency market, highlighting the significant price drop of Bitcoin and the bullish outlook from major international investment banks like Standard Chartered and Citibank, which predict a potential rise in Bitcoin prices driven by institutional investment and its correlation with gold [1][3][6]. Group 1: Investment Banks' Predictions - Standard Chartered raised its short-term Bitcoin price target from $120,000 to $135,000, asserting a year-end target of $200,000 [1][5]. - Citibank noted that the correlation between Bitcoin and gold has surged to 0.7, indicating a strong relationship where both assets tend to move together [6][8]. - Standard Chartered's analysis suggests that if global pension funds allocate just 1% (approximately $400 billion) to Bitcoin, it could push the price to $200,000 [5]. Group 2: Market Dynamics - The article emphasizes that institutional funds, including U.S. retirement and sovereign wealth funds, have not yet significantly entered the Bitcoin market, suggesting that the current price movements are just the beginning [3][5]. - The inflow of capital into Bitcoin ETFs has been substantial, with daily net inflows exceeding $1 billion multiple times in October [5]. - The article highlights the role of global liquidity easing, with the Federal Reserve having already cut interest rates and expectations for further cuts, which could benefit risk assets like Bitcoin [10][14]. Group 3: Risks and Considerations - Despite the optimistic outlook from investment banks, there are warnings about potential short-term volatility, with Bitcoin experiencing a 3.21% drop on October 11, raising concerns about market corrections [13]. - Regulatory risks remain a concern, particularly with the EU tightening cryptocurrency regulations, which could impact market sentiment and investment flows [16]. - The article advises caution regarding investment strategies, suggesting that investors should monitor ETF fund flows and Federal Reserve interest rate decisions as key indicators for market movements [18].