Standard Chartered Predicts Bitcoin to Reach $500,000 Before Trump’s Departure
Standard Chartered predicts Bitcoin will reach $500,000 before Trump’s presidency ends due to better regulatory conditions and enhanced access through ETFs. Bitcoin’s current price is $98,600, reflecting a substantial increase since the election. The forecast involves gradual price milestones leading to $500,000 by 2028, with implications for market capitalization and investor behavior.
Standard Chartered, the British multinational bank, forecasts that Bitcoin (BTC) will surge to $500,000 before President Donald Trump’s term ends. This anticipated increase is attributed to a more favorable regulatory environment and improved access to cryptocurrencies. The bank predicts progressive price milestones for Bitcoin, estimating values of $200,000 in 2025, $300,000 in 2026, $400,000 in 2027, and a plateau at $500,000 in 2028.
Currently valued at $98,600, Bitcoin has experienced a 43% increase from its pre-election price of $68,800. Achieving $500,000 would represent a staggering 407% increase, potentially elevating its market capitalization to $10.5 trillion, which would surpass industry giants like Apple and Microsoft, while also capturing a significant share of gold’s market cap estimated at $19.4 trillion.
A key factor in Standard Chartered’s bullish outlook is the introduction of Bitcoin spot exchange-traded funds (ETFs) in January 2024, which has already attracted $39 billion in inflows, driving home the notion of pent-up demand being released due to enhanced accessibility. Additionally, the bank highlights the friendlier regulatory atmosphere following the repeal of Staff Accounting Bulletin No. 121, which had mandated digital assets be recorded as liabilities.
Geoff Kendrick, Standard Chartered’s Global Head of Digital Assets Research, emphasizes the importance of President Trump’s January 23 directive for evaluating a potential national digital assets stockpile, suggesting it may encourage central banks to consider Bitcoin investments. This evolving situation could mitigate Bitcoin’s infamous volatility, making the asset more palatable for traditional investors.
As Bitcoin’s volatility decreases, its appeal in optimized investment portfolios featuring gold is expected to rise, enhancing its long-term price appreciation potential as investor accessibility improves. Lower volatility coupled with increased access are anticipated to steer Bitcoin towards more stable pricing in the future.
The article discusses the predictions made by Standard Chartered regarding the future price trajectory of Bitcoin, along with the factors influencing these forecasts. It elaborates on the expected regulatory changes and increased investor access stemming from the introduction of Bitcoin ETFs. This context is crucial in understanding the bank’s optimistic stance on Bitcoin’s future market performance, particularly in relation to global market leaders such as Apple and Microsoft, and its place within existing financial assets.
In summary, Standard Chartered projects Bitcoin may soar to $500,000 before Trump’s presidency concludes, driven by favorable regulations and wider access through ETFs. From its current value, such growth indicates significant market potential and a substantial shift in investor sentiment. Lower volatility could further facilitate this positive trend, presenting opportunities for traditional investors looking for stable assets.
Original Source: decrypt.co
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