Bitcoin’s Best Week In 3 Years Amid Record Short Liquidations Puts $126K Overshoot Back In Play, Standard Chartered Says

• Standard Chartered's Geoffrey Kendrick said his $100,000 year-end Bitcoin forecast may now be too low.
• Bitcoin ETFs have attracted roughly $1.5 billion in inflows this week, which Kendrick views as an early sign of renewed demand.
• According to him, low open interest across crypto markets could leave room for more traders and investors to enter if Bitcoin's rally continues.

Bitcoin (BTC) rallied past $78,000 on Friday morning, and is on track for its strongest weekly performance in more than three years. 

According to Standard Chartered analyst Geoffrey Kendrick, it could shoot past its record high of over $126,000 before the end of the year.  “For the first time this year there is now a risk my end year forecast (of $100k) is too low,” Kendrick wrote in an email to clients, adding that “an overshoot towards the all-time high before year-end may be possible” after October 6.

Koyfin data showed Bitcoin was on track for its biggest weekly gain in more than three years.

According to Kendrick, the rally highlights “the other side of digital asset volatility.” Earlier in 2026, investors had grown accustomed to steep declines. The latest rally, he said, is beginning to show how quickly prices can move in the opposite direction.

Bitcoin’s price rose 8.8% in the last 24 hours to cross $78,000 on Friday morning, marking an over three-month high. Over the past seven days, BTC’s price has rallied by over 23%, but remains around 40% below its record high of over $126,000 seen in October last year. 

Retail sentiment around the apex cryptocurrency on Stocktwits remained in ‘extremely bullish’ territory over the past day, while chatter rose to ‘extremely high’ from ‘high’ levels.

Record Short Liquidations Fuel Bitcoin's Rally

Most of this week's move in Bitcoin’s price has been driven by the liquidation of bearish positions, according to Kendrick. Based on CoinGlass data going back to June 2021, he said the market has seen the largest liquidation of Bitcoin short positions on record. When traders betting against Bitcoin are forced to close those positions during a rally, the resulting buying can add further momentum to the move higher.

However, Kendrick suggested the rally could increasingly attract fresh capital rather than relying solely on short covering. He described Bitcoin as a “Giffen” good for long-term investors, stating that rising prices can encourage investors to buy more rather than wait for a pullback.

Kendrick said that the dynamic is already emerging in the ETF market. He noted Bitcoin ETFs had attracted roughly $1.5 billion in inflows so far this week. While he called the pickup “encouraging,” he said it remains relatively modest and could represent only the early stages of renewed investor demand.

Can Low Open Interest Fuel Bitcoin's Next Move Higher?

In addition to the uptick in Bitcoin ETF inflows, Kendrick also pointed to relatively low open interest across crypto markets. According to him, digital assets have lagged the AI trade for much of the year, leaving speculative interest subdued compared with previous periods of strong market momentum.

If Bitcoin’s price continues to rise, it could draw traders and investors back into the cryptocurrency market, adding to the rally, Kendrick said. According to an ongoing poll on Stocktwits, 50% of retail traders who responded stated that they were “buyers” of cryptocurrency amid the current rally. 

Read also: Bitcoin’s $77K Breakout Has Retail Buying The Rally – But Over $4.1B Crypto Bets Got Wiped Out In 2 Days

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