In the beginning of May, the number of Bitcoins held on exchanges reached a monthly high.
The drop in price of the cryptocurrency to below $57,000 was attributed to American institutional investors selling, however it did not experience a significant decline and Standard Chartered analysts believe that $56,500 could be the bottom.
Most investors are not interested in it dropping to $50,000 at this point, and the bank maintains their previous forecast that Bitcoin could potentially reach $200,000 by the end of 2025.
The rising government debt in the US is a concern for medium and large investors, driving them to seek out alternative methods for protecting their capital.
BTC has performed well in recent years as a safe-haven asset and Standard Chartered predicts that it could receive a large influx of funds as a result of investors pulling out of Treasuries.
