(MENAFN- Yolo Wire) Standard Chartered has predicted that %Bitcoin (CRYPTO: $BTC) will reach a new all-time high within a week. With prices already over $120,000, the global bank's forecast is indicative of increasing institutional confidence in the digital asset. The bank, which holds $850 billion in assets, has increased its presence in the crypto market and is now signalling that further gains could be on the horizon.

Analysts believe the call could spur investor excitement. The timing coincides with the beginning of "Uptober," a month that is often linked to strong Bitcoin rallies. Institutional participation in the form of exchange-traded funds and corporate treasury allocations is adding to bullish sentiment. Traders view the forecast as a possible catalyst for more flows into the sector.

On-Chain Data Supports Strong Quarter

On-chain analytics firm %CryptoQuant has noted conditions that could lead to a price rally in the final quarter of 2025. The company stated that spot demand has been increasing consistently since July, with apparent demand growing at a rate of more than 62,000 BTC per month. Similar behaviour was seen in the Q4 rallies of 2020, 2021, and 2024.

Whale accumulation is also expanding. Holding growth is accelerating at an annualized rate of 331,000 BTC, faster than that seen in previous cycles. ETFs continue to lead the way, as U.S. products bought 213,000 BTC in Q4 2024, up 71% from the previous quarter. Demand is also predicted to be similar this year, further compressing supply.

CryptoQuant highlighted the significance of the "trader's on-chain realized price" level of $116,000. Clearing that threshold marked a return to the bull phase of the cycle. With the level already surpassed, the firm expects the price range to be from $160,000 to $200,000 by the end of the year if momentum continues.

Uptober Sentiment and What Lies Ahead

Price action in late September signalled the change. Bitcoin consolidated around $108,000 before breaking out of its trading range on September 29. Volume increased as buyers returned, with prices surging past $110,000 and $112,500. By October 1, momentum had been on the rise, propelling the asset to nearly $121,500.

The rally is consistent with Bitcoin's seasonal strengthening at the beginning of Q4. Analysts cite the exhaustion of selling pressure in September and the return of institutional flows as the driving factors. The increase has also awakened the hope of traders, and sentiment is changing from caution to confidence. At the time of writing, Bitcoin is trading at $120,509 and has risen 1.5% in 24 hours.

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