Bitcoin has seen a sharp decline recently, but Standard Chartered remains bullish on its long-term potential.
Geoffrey Kendrick, head of digital assets research at the bank, believes the cryptocurrency could reach $200,000 by the end of this year and climb to $500,000 before Donald Trump’s presidency ends.
Standard Chartered Analyst Predicts Bitcoin At $500,000
Despite Bitcoin’s sinking to a three-month low, Kendrick remains confident. He told CNBC that increased institutional adoption and clearer regulations will help stabilize the market and drive prices higher.
He pointed to financial giants like BlackRock and Standard Chartered stepping into the crypto space as key drivers of future growth.
Bitcoin’s Price Actions
Bitcoin has experienced a steep drop in the past week. The cryptocurrency is currently trading at $79,238.06, down 7.73% in the last 24 hours.
Over the past seven days, it has lost nearly 20% of its value. Global market capitalization now stands at $1.57 trillion, while trading volume has increased by 4.68%.
Earlier this week, Bitcoin fell below $90,000 amid a broader market selloff. The digital asset is now about 20% lower than its all-time high of $108,786, which it reached in January.
According to Kendrick, this drop is partly due to global uncertainty surrounding economic policies, trade tariffs, and ongoing geopolitical tensions.
Institutional Adoption and Regulatory Clarity
Kendrick argues that institutional investment is crucial for Bitcoin’s long-term success. He believes that large financial firms will gain confidence in the crypto market once prices stabilize and regulatory frameworks become clearer.
He expects new rules on stablecoins and anti-money laundering policies in the U.S. to further legitimize digital assets.
As regulation becomes more defined, he predicts that more American banks and major institutions will enter the crypto space. This would create a safer and more mature market, reducing volatility over time.
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Trump’s Influence on Bitcoin’s Growth
Trump’s presidency has played a role in shaping Bitcoin’s price movements. The cryptocurrency surged past $100,000 in December following his election victory. Crypto supporters view Trump favorably due to his stance on digital assets.
In January, he signed an executive order promoting the development of cryptocurrencies in the U.S. and advancing a national digital asset strategy.
With Trump in office, Kendrick believes Bitcoin will see significant gains. He expects the crypto market to improve later in the year as investors anticipate regulatory updates and greater institutional involvement.
Short-Term Caution, Long-Term Optimism
While Kendrick remains optimistic, Standard Chartered recently warned that Bitcoin could experience further declines in the short term. The bank’s research team predicted a potential 10% correction before the asset stabilizes.
Despite the recent dip, the long-term outlook remains positive. If institutional investment continues to rise and regulations provide clearer guidelines, Bitcoin could reach new record highs in the coming years.
For now, the market remains volatile, but analysts like Kendrick believe the road ahead leads to massive gains.