Standard Chartered predicts that Bitcoin will reach $500,000 before Donald Trump leaves office, citing increased investor access and reduced volatility.
Standard Chartered predicts that Bitcoin will reach $500,000 before Donald Trump leaves office, citing increased investor access and reduced volatility. The bank projects Bitcoin hitting $200,000 in 2025, $300,000 in 2026, $400,000 in 2027, and $500,000 in 2028. Bitcoin is currently priced at $96,700, a 43% increase from its value of $68,800 before Trump’s election victory. If it reaches $500,000, Bitcoin’s market capitalization would be around $10.5 trillion, possibly surpassing Apple and Microsoft while accounting for half of gold’s $19.4 trillion market cap.
The introduction of Bitcoin spot ETFs in January 2024 has contributed to the surge, attracting a net $39 billion in inflows. Geoffrey Kendrick, Standard Chartered’s Head of Digital Assets Research, emphasized that regulatory improvements and expanded institutional access are major drivers of Bitcoin’s growth. He pointed to Trump’s repeal of Staff Accounting Bulletin (SAB) No. 121, which had required companies to record digital assets as liabilities, as a significant step for the industry.
Trump’s recent order to explore a national digital assets stockpile is also seen as a factor that could encourage central banks to invest in Bitcoin. Standard Chartered suggests that as volatility decreases, Bitcoin will become more attractive to traditional investors, leading to price appreciation. Kendrick explained that lower volatility would increase Bitcoin’s share in portfolios alongside gold, pushing prices higher as investors adjust their asset allocations.
Meanwhile, Ethereum has struggled against Bitcoin. The Ethereum-to-Bitcoin ratio has dropped to 0.028, its lowest level in over four years, with the ratio briefly touching 0.027. Over the past month, Ethereum has declined by 13.8% against Bitcoin and has fallen more than 70% since September 2022. Despite this, institutional investors continue to show interest, with Ethereum ETFs recording a net inflow of $308 million on Feb. 4. Bitcoin spot ETFs saw even higher inflows at $341 million, with BlackRock’s iShares Bitcoin Trust alone receiving $249 million.
Market conditions remain uncertain due to geopolitical tensions. The ongoing U.S.-China trade conflict has created volatility across financial markets. While Bitcoin has maintained its position above $90,000, QCP Capital cautioned that it remains vulnerable to price shocks. The firm noted that while a delay in tariffs against Mexico and Canada has provided some relief, Bitcoin’s price could still be impacted by global developments.
Kendrick expects institutional inflows into Bitcoin ETFs to keep increasing, reinforcing Bitcoin’s upward trend. Ongoing regulatory developments, including stablecoin legislation and the creation of a Strategic Bitcoin Reserve task force, are also seen as long-term positives for the industry. Standard Chartered maintains that Bitcoin is on track to reach $500,000 before Trump leaves office, driven by regulatory clarity, increasing institutional adoption, and reduced market volatility.
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