In a bold investor note released on February 5, Standard Chartered’s analyst Kendrick projects a significant rise in Bitcoin’s price over the next several years. According to Kendrick, Bitcoin could hit $200,000 by the end of 2025, marking an extraordinary leap from its current value. The ambitious forecast is based on factors such as increased institutional access and declining market volatility.
Key Factors Driving Bitcoin’s Price Surge
In his analysis titled “Bitcoin—Pathway to the USD 500,000 Level,” Kendrick identifies two main factors fueling Bitcoin’s potential rise:
- Increased Institutional Access Through Bitcoin ETFs
Kendrick highlights the growing role of US Bitcoin exchange-traded funds (ETFs), which have allowed for broader investor access. This trend is expected to gain momentum under former President Donald Trump’s administration, with ETFs already attracting over $39 billion in inflows. Kendrick believes that the approval of Bitcoin ETFs has released pent-up demand and will continue to do so as access increases. - Decreasing Market Volatility
As Bitcoin’s market stabilizes, its volatility is expected to decrease. Kendrick suggests that a more predictable market will foster greater institutional adoption. The increased stability could make Bitcoin an attractive addition to portfolios, particularly in a gold-Bitcoin mix. Lower volatility and enhanced access, according to Kendrick, will drive long-term price appreciation.
Bitcoin’s Price Outlook: $200K by 2025 and $500K by 2028
Kendrick’s optimistic view extends beyond the short term. He predicts that Bitcoin will reach $200,000 by 2025, $300,000 by 2026, and $400,000 by 2027, with the price potentially stabilizing at $500,000 in 2028. The predicted rise in price hinges on these two pivotal factors—easier access and a more stable market.
Kendrick’s predictions also factor in significant changes in US regulations, such as the repeal of SAB 121 and executive orders under Trump’s leadership aimed at encouraging central bank adoption of digital assets.
Analyst Reactions to Bitcoin’s Future Predictions
Bloomberg’s senior ETF analyst Eric Balchunas reacted to Kendrick’s forecast, calling it an optimistic outlook. On social media platform X (formerly Twitter), Balchunas commented, “Standard Chartered is mainlining the hopium again, says Bitcoin will hit $500K by end of Trump term.” He acknowledged, however, that Standard Chartered’s previous predictions about Bitcoin ETFs were surprisingly accurate.
Crypto investor Thomas Kralow also commented on Kendrick’s bold forecast, suggesting that while the prediction might seem ambitious, it’s not entirely out of the realm of possibility.
Comparing Previous Bitcoin Predictions
Kendrick’s $200,000 prediction comes after Standard Chartered had forecasted that Bitcoin would reach $125,000 by 2024, contingent on a Republican victory in the US elections. While Bitcoin has not yet reached that figure, it did surpass $100,000 earlier in December 2024. As of now, Bitcoin is trading at around $97,352, showing a slight uptick of 0.57% over the last 24 hours.
The Bigger Picture: Institutional Adoption and Regulatory Landscape
Standard Chartered isn’t the only institution projecting a bullish outlook for Bitcoin. CryptoRank, a leading cryptocurrency platform, also predicts that Bitcoin will reach new all-time highs in 2025. Their forecast envisions central banks adopting Bitcoin as a reserve currency, further boosting its long-term value.
As for Bitcoin DeFi, CryptoRank anticipates that it will emerge as a major player in the crypto space, with an increasing number of S&P 500 companies adding Bitcoin to their balance sheets. However, both reports emphasize that the future trajectory of Bitcoin heavily relies on US regulatory policies. A pro-Bitcoin stance from the government could accelerate growth, while any regulatory pushback could trigger a market correction.
Will Bitcoin’s Price Reach $500,000?
Kendrick’s $500,000 Bitcoin prediction by 2028 reflects growing optimism among institutional investors and crypto enthusiasts. Whether or not Bitcoin reaches these milestones remains to be seen, but one thing is clear: the world of digital assets is evolving quickly, with Bitcoin poised for further growth in the coming years.
