Standard Chartered Bank Forecast: Bitcoin price will reach $500,000

Standard Chartered Bank Predicts Bitcoin Reaching $500,000 by 2028

Standard Chartered Bank has issued a bold prediction: Bitcoin's price will soar to $500,000 by the year 2028. This forecast comes from Geoffrey Kendrick, the Head of Digital Assets Research at the renowned financial institution. Kendrick cites increased accessibility for investors and a projected reduction in volatility as primary drivers for this significant price surge.

ETF Launch as a Catalyst for Growth

A key factor underpinning Kendrick's bullish outlook is the January 2024 launch of spot Bitcoin Exchange-Traded Funds (ETFs). These ETFs have dramatically broadened investor access to Bitcoin, allowing a wider range of individuals and institutions to participate in the cryptocurrency market without directly holding Bitcoin.

Volatility Reduction as the Market Matures

Kendrick anticipates that Bitcoin's notorious volatility will gradually diminish as the ETF market matures and the underlying financial infrastructure supporting Bitcoin improves. He believes that increased liquidity and more sophisticated trading strategies will contribute to a more stable price environment.

Drawing Parallels with Gold ETFs

To illustrate his point, Kendrick draws a comparison with gold ETFs. He anticipates that Bitcoin ETFs will follow a similar trajectory, attracting substantial investment and contributing to long-term price appreciation, much like their gold counterparts.

Potential Policy Impact Under a Trump Administration

Furthermore, Kendrick anticipates that a potential future Trump administration could further bolster the digital asset landscape. He specifically highlights the potential repeal of Staff Accounting Bulletin 121 (SAB 121), which has complicated the accounting treatment for firms holding crypto assets. Kendrick also cites a potential executive order focusing on the national stockpile of digital assets as a positive signal for the industry.

Price Targets Along the Way

As part of his overall prediction, Kendrick provides a timeline for Bitcoin's price ascent:

End of 2025: $200,000

End of 2026: $300,000

End of 2027: $400,000

End of 2028: $500,000

In summary, Standard Chartered Bank's prediction reflects a strong belief in the long-term potential of Bitcoin, fueled by increased accessibility, reduced volatility, and potentially favorable policy developments.