An optimistic cryptocurrency analyst at Standard Chartered has doubled down on a $500,000 Bitcoin price forecast for Donald Trump’s presidency despite a recent selloff that has depressed the leading cryptocurrency to a three-month low.
Geoffrey Kendrick, head of digital assets research at the bank, said he expected Bitcoin to reach $200,000 this year before climbing even higher over the coming years.
“What we need in the crypto ecosystem are traditional financial players, like Standard Chartered, BlackRock, and others that have the ETFs now to step in,” Kendrick said in an interview on Thursday.
Kendrick claimed that as the industry matures and becomes more institutionalized, it should also become safer, which would normally lead to fewer negative headlines like the recent $1.5 billion hack on cryptocurrency exchange Bybit. The growing adoption of crypto by institutions and some regulatory clarity in the US would streamline, he added, and reduce volatility in the long term.
Regulatory clarity and institutional adoption will rally Bitcoin to its highest level
According to Kendrick, regulatory clarity should add to the potential for medium-term upside. He predicts that Bitcoin will hit $200,000 this year and $500,000 before Trump leaves office.
Kendrick elaborated that it is vital for the legacy finance world to allocate capital to Bitcoin and other cryptocurrency assets, with price and regulatory certainty being the two sides of the coin required in the process. As the crypto market matures and clearer regulatory frameworks are established, institutional investors are more likely to enter the space, which he said will also help decrease overall volatility and promote growth over the longer term.
According to CoinGecko data, the digital currency was trading at $86,418 on Thursday, 20% below its all-time high of $108,786 in January. This steep drop-off shows continued market anxiety as investors navigate mixed economic messages and changing risk appetites, leaving the future uncertain.
Kendrick explained that economic and political uncertainties led to the overall drop in the digital currency. He pointed to anxieties about tariffs, trade policies, and the resolution of major global conflicts, including the Russia-Ukraine and the Israel-Gaza wars. Investors have been more cautious in an environment of rising geopolitical tensions, and volatility across traditional and digital assets has ramped up.
However, Kendrick is still bullish on Bitcoin’s long-term trajectory, indicating that we’re starting to see less volatility and stronger upward momentum as more institutional money pours into the crypto space and regulations become clearer.
Cryptocurrency sector was critical in shaping the political agenda during the 2024 US Presidential elections
Kendrick noted that risk assets “do not respond well to uncertainty… as recently demonstrated in markets.”
“And that has become clear in the past little bit,” Kendrick said. “US tech stocks have been falling,” he said, “and the Bybit breach has just contributed more to negative sentiment about the wider crypto market.”
He says that the crypto picture will improve later this year as traders look forward to major new rules governing stablecoins and anti-money laundering.
Kendrick said this should help legitimize the industry even further and get ready for more US banks to get involved and bigger institutions in the country to keep going forward in their participation.
Kendrick was among a handful of market analysts predicting that Bitcoin would double in price this year to $200,000. That road became history in December when it passed the much sought-after $100,000 mark, in a surge that coincided with Donald John Trump’s election to the US presidency.
This slingshot effect was said to be due to market strength building as investors bet on whether Trump’s presidency would lead to a more favourable regulatory environment or even the institutional adoption of digital assets.
Trump’s pro-crypto rhetoric has rendered him a more friendly figure for the industry and a godsend for industry advocates.
When Trump took office in January, he marked the progress of cryptocurrency development in the United States with an executive order. The order set forth plans for sector growth, improved blockchain development, and a national digital asset stockpile.
These actions were perceived as a shift toward a more crypto-friendly regulatory climate in the future, and they have solidified investor confidence.
The cryptocurrency industry also significantly shaped the political landscape of the 2024 election cycle. Crypto investors, companies, and executives were among the most important financial backers, accounting for nearly half of all corporate donations.
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