The prediction comes as institutional demand accelerates and market circumstances stabilize following current regulatory shifts and macroeconomic developments.
Institutional Momentum Strengthens Bitcoin’s Outlook
Kendrick highlighted that the market has entered a section of relative stability after the U.S. Federal Reserve saved rates of interest unchanged in its newest coverage determination. With lowered rapid uncertainty and the following Fed determination scheduled for March 19, Bitcoin is poised for additional features.
A key driver of institutional adoption is the SEC’s determination to rescind SAB 121, a coverage that beforehand restricted monetary establishments from custodying digital property. This reversal removes a significant regulatory barrier, permitting extra conventional establishments to enter the Bitcoin market.
“Institutional flows into Bitcoin will proceed to assemble tempo consequently,” Kendrick acknowledged.
He expects BTC to check its earlier all-time excessive of $109,000 quickly, earlier than coming into a $112,000 to $130,000 vary in February and March.
Market Reset Clears Excessive Leverage
Bitcoin’s current value fluctuations have additionally helped clear up leveraged positions. On Monday, $1.1 billion in lengthy Bitcoin positions had been liquidated following a sell-off triggered by DeepSeek’s AI mannequin announcement.
Kendrick believes this market shakeout has created a stronger basis for Bitcoin’s subsequent transfer upward.
AI-Driven Inflation Reduction Could Benefit Bitcoin
Another issue supporting Bitcoin’s value is the potential for synthetic intelligence (AI) to decrease inflation.
If AI-driven technological deflation helps scale back total inflation, threat property like Bitcoin may gain advantage, even when they aren’t instantly tied to AI adoption.
Trump’s Crypto Executive Order Adds Uncertainty
Kendrick additionally commented on the current government order from Donald Trump directing a coverage group to discover the creation of a nationwide digital asset stockpile.
While the transfer indicators authorities recognition of crypto’s significance, Kendrick famous some ambiguity in its wording.
“‘Stockpile’ slightly than ‘Reserve’ sounds extra like seized property slightly than bought property,” he defined, including that additional motion would require Congressional approval, which might take time.
Despite the preliminary uncertainty, Kendrick believes the market has already moved previous its response section, setting the stage for the following large transfer: “Buy the dip.”