Key Points
- Bitcoin is experiencing a pullback, but Standard Chartered predicts a rise to $500,000 before the end of Trump’s presidency.
- The prediction is based on factors such as Trump’s regulatory changes, SEC overhaul, and the creation of a new crypto task force.
Bitcoin [BTC] is currently undergoing a bearish pullback due to macroeconomic uncertainty. However, Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered, has a more optimistic outlook. He has set an ambitious target of $500,000 for the leading crypto asset before the end of Trump’s presidency.
Factors Influencing the Prediction
The year 2025 began with bold predictions for Bitcoin, including strategic reserves, banks offering BTC services, and a price target of $150,000. However, two months in, BTC is still under $100,000. In this market climate, Standard Chartered’s $500,000 prediction might seem overly ambitious. However, this target was set during Trump’s administration, and there are reasons for this.
Since the elections in November, BTC has surged by over 30%, with $90,000 as the average market bottom. To reach $500,000, Bitcoin would need to increase by 455% before 2028. In 2024, BTC saw gains of 156%. If similar growth occurs in the next few years, Standard Chartered’s bold prediction could come true.
Impact of Regulatory Changes
Trump’s regulatory shake-up, the overhaul of the SEC, his dislike of high interest rates, the DOGE cabinet, and a new crypto task force are pushing big targets forward. These factors are causing the current volatility to be seen as a temporary dip.
A significant portion of BTC’s 156% YTD jump is due to U.S Spot ETFs, which have invested billions into Bitcoin. BlackRock (IBIT) alone has seen its Bitcoin holdings increase by a staggering 726%, now holding 585,393 BTC. Furthermore, BlackRock is planning to launch a Bitcoin ETP (Exchange-Traded Product) in Europe, which will bring even more global exposure and a flood of new capital into the market.
With these factors in mind, Standard Chartered’s bold Bitcoin prediction seems more like a calculated bet on strong fundamentals, rather than mere speculation. However, it all depends on whether Trump’s promises are executed swiftly as 2025 progresses. The market is watching closely, especially as the ongoing trade war has already driven many into “extreme” fear.