Bitcoin rebounded above $64,000 after Standard Chartered reaffirmed its 2026 year-end target price of $100,000 and argued that the recent sell-off linked to the Strategy did not weaken Bitcoin’s long-term outlook.
Summary
- Standard Chartered says strategy-related concerns, not Bitcoin’s fundamentals, caused the recent market pullback.
- The bank has reaffirmed its $100,000 price target for Bitcoin by the end of 2026 despite recent volatility.
- Wells Fargo raised its strategic stake while trimming IBIT holdings and expanding its crypto options positions.
Standard Chartered said Bitcoin’s recent decline was due more to uncertainty about the Treasury’s changing approach to finance than any deterioration in the cryptocurrency’s fundamentals.
In a research note, the bank maintained that the pullback should not be viewed as a sign that the long-term bull case has changed.
Strategic wealth changes remain at the center of investors’ attention
According to Standard Chartered’s Global Head of Digital Assets Research, Geoff Kendrick, investors have misunderstood the Strategy’s flexible use of its Bitcoin asset. Rather than continue to rely heavily on debt and equity issuance to raise Bitcoin, the company is increasingly using treasury to support debt-oriented products, including its preferred stock, STRC.
Standard Chartered said this development has changed the way some investors interpret the Strategy’s role in the Bitcoin market. The bank added that clear communication around the company’s wealth plans could help reduce concerns about future Bitcoin sales.
In its report, Standard Chartered compared the importance of fiduciary corporate bonds to how central banks use consistent policy signals to build market confidence.
Earlier this year, Bitcoin’s strategy for sale caused a sharp reaction in the market after investors questioned whether the company could continue to reduce its holdings. According to the report, the announcement contributed to Bitcoin falling from around $80,000 to around $60,000, while shares of Strategy and STRC also declined as investor confidence waned.
Even then, however, Standard Chartered maintained its prediction that Bitcoin could reach $100,000 by the end of 2026, arguing that the market is overreacting to the surrounding uncertainty rather than changes in Bitcoin itself.
The institutional landscape continues to evolve
As Bitcoin returns to trading near $64,500, institutional investors have also adjusted their exposure to Strategy and crypto investment products.
As previously reported by crypto.news, Wells Fargo disclosed in a recent filing with the US Securities and Exchange Commission that it increased its holdings in Strategy by 125%, raising its position to approximately 726,000 shares after adding approximately $41.5 million to the offering.
The same filing also showed that Wells Fargo reduced its position in iShares Bitcoin Trust of BlackRock by 75,102 shares compared to the previous quarter.
At the same time, the bank opened a new IBIT call facility and expanded its exposure during a period of high market uncertainty associated with the US-Iran conflict, indicating a balanced selection strategy instead of relying solely on ETF holdings.
In addition to Bitcoin-related investments, the SEC filing showed that Wells Fargo also increased its exposure to Ethereum- and Solana-related products, suggesting the institution’s continued participation in all digital asset markets despite recent volatility.
Standard Chartered argued that if Strategy is successful in explaining how its wealth model is changing, concerns about further Bitcoin sales may be further alleviated. With Bitcoin trading back above the $64,000 level while the bank maintained its long-term forecast, the report said investor confidence could continue to improve as uncertainty about Strategy’s financial strategy fades.
