The cryptocurrency-friendly banking behemoth Standard Charter has predicted that Bitcoin will surge multiple times to half a million dollars within the next three years.
In an email analysis, Jeffrey Kendrick, the Head of Licensed Research at Standard Charter, projected a staggering increase to $500,000. This bold prediction is based on his access to the flagship cryptocurrency’s continuous growth and reduced volatility, as an experienced market expert.
Factors Driving Price Appreciation
Kendrick asserts that the astonishing upward trend will come from increased access to Bitcoin. The Standard Charter executive emphasizes the impact of Donald Trump’s openness to globally exposed assets.
Ever 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 has promised to foster the development of digital assets by enacting clear regulations and strategic Bitcoin reserves.
Additionally, Kendrick also points out the incredible exposure generated by the launch of a US Bitcoin spot exchange-traded fund (ETF) in January 2024. Traditional investment vehicles quickly gained traction in the market after their debut, accumulating a total net inflow of $40.67 billion to date.
He believes that the spot ETF has attracted institutional investors into the Bitcoin market and expects more products. In comparison, when Bitcoin’s ETP (Exchange-Traded Product) tracking precious metal attributes makes its debut, he predicts a similar effect to gold.
In terms of context, 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.
Reduced Bitcoin Volatility to Sustain the Upward Trend
Furthermore, the Standard Charter CEO predicts that reducing Bitcoin’s volatility will greatly facilitate the meteoric rise. The pioneering cryptocurrency has gained notoriety for its intense price fluctuations, as seen on Monday.
However, Kendrick expects price volatility to cool down as the Bitcoin ETF matures. He suggests that with large capital flowing into Bitcoin, the asset may gain greater stability, which is necessary for a sustainable long-term upward trajectory.
Trump’s Favorable Stance to Propel 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, which will position the United States as the world’s capital of crypto.
Additionally, he has made his mark in the regulatory field, appointing Paul Atkins as the new chairman of the Securities and Exchange Commission (SEC), and Mark Uyeda to act in his capacity.
Under the new government’s leadership, the SEC has abolished Staff Accounting Bulletin 121, allowing financial institutions to access digital assets on their balance sheets.
Simultaneously, the growing momentum in Congress to create a national Bitcoin reserve is garnering global attention. Kendrick points out that this initiative will influence other countries’ perspectives on Bitcoin, thereby expanding adoption.
Based on these points, Standard Charter predicts that Bitcoin will reach $200,000 by the end of 2025, $300,000 next year, $400,000 in a year’s time, and $500,000 by the end of 2028.