Cryptocurrency-friendly banking giant Standard Chartered has predicted that Bitcoin will soar to half a million US dollars multiple times within three years.
In an email analysis, Jeffrey Kendrick, the Head of Standard Chartered’s Special Charter Research responsible for cryptocurrency research, predicts a surge to $500,000. The experienced market expert bases his bold prediction on the continued growth in access to the flagship cryptocurrency and the decreasing volatility.
Factors driving the price increase
Kendrick asserts that the astonishing upward trend will come from increased access to Bitcoin. The Standard Chartered executive highlights the impact of Donald Trump’s flirtation with the asset that is open to the world.
Since announcing his interest in running for a second term in the White House, the US President has been flirting with the industry. Under his government’s leadership, Trump promised to foster the growth of digital assets through clear regulations and strategic Bitcoin reserves.
Additionally, Kendrick points out the incredible exposure that the launch of the US Bitcoin spot exchange-traded fund (ETF) in January 2024 brought. Traditional investment instruments quickly gained traction in the market after their initial debut, accumulating a total net inflow of $40.67 billion to date.
He believes that the spot ETF attracted institutional investors into the Bitcoin market and expects more products. In comparison, he predicts Bitcoin will see a similar effect to gold when it introduces an exchange-traded product (ETP) that tracks its precious metal attributes.
In terms of background, gold grew 4.3 times in the seven years following the launch of exchange-traded products in 2004. As a result, Kendrick infers that a mature Bitcoin ETF will contribute to a similar surge within two years.
Decreasing volatility of Bitcoin to sustain the upward trend
Furthermore, the Standard Chartered CEO predicts that reducing Bitcoin’s volatility will greatly facilitate the meteoric rise. The pioneering cryptocurrency is notorious for its intense price fluctuations, as seen on Monday.
However, Kendrick expects the price volatility to cool down with the maturation of the Bitcoin ETF. He suggests that as large capital flows into Bitcoin, the asset may gain greater stability, which is necessary for a sustainable long-term upward trajectory.
Trump’s friendly stance to drive the climax
Moreover, the report states that Trump’s warm embrace will steer Bitcoin in the right direction. The President recently signed an executive order establishing a digital asset working committee that will make the US the cryptocurrency capital of the world.
Furthermore, he has made his mark in the regulatory field by appointing Paul Atkins as the new Securities and Exchange Commission (SEC) chairman and Mark Uyeda to act in his capacity. Under the new government’s leadership, the SEC has abolished Staff Accounting Bulletin (SAB121), allowing financial institutions to access digital assets on their balance sheets.
Meanwhile, the growth momentum in the US is creating a national Bitcoin inventory that is attracting global attention. Kendrick points out that this initiative will influence other countries’ perception of Bitcoin, thus expanding adoption.
Based on these points, Standard Chartered predicts that Bitcoin will reach $200,000 by the end of 2025, $300,000 next year, $400,000 in a year, and $500,000 by the end of 2028.
