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Standard Chartered’s bold prediction places Bitcoin’s future price at $500,000, driven by a more favorable regulatory landscape under a Trump administration.
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The bank foresees that Bitcoin will experience significant growth, escalating from $200,000 in 2025 to $500,000 by 2028, reflecting optimism in market trends.
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Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, emphasized the potential for Bitcoin’s volatility to decrease, potentially attracting a broader base of traditional investors.
Standard Chartered predicts Bitcoin will reach $500,000, driven by regulatory friendliness and ETF access, potentially aligning it closer to gold’s market cap.
Standard Chartered Predicts Bitcoin Could Reach $500,000
In a surprising forecast, Standard Chartered, a prominent British multinational bank, has published predictions suggesting that Bitcoin (BTC) could surge to a staggering $500,000 before the end of Donald Trump’s potential administration. This forecast hinges on the belief that a friendlier regulatory framework, along with enhanced access through the launch of Bitcoin spot exchange-traded funds (ETFs) in January 2024, will propel BTC’s adoption among investors.
Projected Growth Timeline for Bitcoin
According to the bank’s projections, Bitcoin’s price trajectory will be gradual yet substantial, moving from an anticipated $200,000 in 2025, to $300,000 in 2026, followed by $400,000 in 2027, ultimately reaching its forecasted peak of $500,000 in 2028. Currently valued at around $98,600, this represents a potential increase of 407% from its pre-Trump electoral victory price of $68,800. The implications of this price growth are significant, suggesting Bitcoin could boast a market capitalization of approximately $10.5 trillion, thereby overtaking tech giants like Apple and Microsoft and drawing closer to gold’s total market cap of $19.4 trillion.
Factors Driving Bitcoin’s Growth
The primary catalyst for this bullish outlook, as per Standard Chartered, is the anticipated increase in investor access following the introduction of Bitcoin spot ETFs, which have reportedly attracted around $39 billion in net inflows. Geoff Kendrick noted, “This supports the theory of pent-up demand being unleashed by increased access.” Furthermore, Kendrick highlighted regulatory advancements, including the repeal of Staff Accounting Bulletin (SAB) No. 121, which initially categorised digital assets as liabilities, as a major step forward for the cryptocurrency sector. Such movements indicate a trend towards more favorable conditions for Bitcoin investment.
Potential Impact of Regulatory Changes
Additionally, Kendrick referenced Trump’s directive for an evaluation of a potential national digital assets stockpile, which could spur central banks to consider allocating funds into Bitcoin. As traditional investors gradually re-enter the market and become more comfortable with the asset class, Bitcoin’s historically high volatility may decrease. This, according to Kendrick, could lead to an increased allocation in optimized portfolios that involve both Bitcoin and gold, ultimately fostering greater price stability.
Conclusion
In summary, the outlook presented by Standard Chartered predicts significant price advancements for Bitcoin over the next few years, driven by a supportive regulatory environment and enhanced access through exchange-traded products. As regulatory barriers diminish and market acceptance widens, Bitcoin stands to potentially become a dominant player within the investment landscape, forging a closer relationship with traditional assets like gold. This transformative potential marks a noteworthy pivot that investors should watch closely.
