Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, has made a bold long-term prediction for Bitcoin, forecasting the cryptocurrency could reach a staggering $500,000 by 2028. Kendrick attributes this potential surge to two main factors: increasing investor access and declining volatility.
In an email to The Block, Kendrick explained, “Access is improving under the [Donald] Trump administration. Institutional inflows will continue to gather pace, and volatility will gradually come lower as the quality of flows improves and other infrastructure expands.” He believes these shifts are crucial for driving Bitcoin’s value to new heights before Trump’s term ends.
Currently, Bitcoin is trading around $98,700, but Kendrick’s forecast rests on the assumption that the cryptocurrency market will mature rapidly, with a particularly important catalyst being the launch of U.S. spot Bitcoin ETFs in January 2024. This development has already led to an impressive $39 billion in net inflows. Kendrick suggests that as the ETF market matures, Bitcoin’s volatility will decline, thanks to the expansion of financial infrastructure like options markets and institutional counterparties.
Kendrick draws a comparison to gold, which saw a 4.3-fold price increase after exchange-traded products (ETPs) were introduced in 2004. He predicts that Bitcoin ETFs will follow a similar trajectory but with faster growth, potentially within just two years rather than seven. As Bitcoin’s volatility decreases, Kendrick argues that Bitcoin’s role in an optimized two-asset portfolio with gold will continue to grow, further driving its price appreciation.
Looking ahead, Kendrick’s forecast includes a series of milestones: Bitcoin reaching $200,000 by the end of 2025, $300,000 by the end of 2026, $400,000 by the end of 2027, and ultimately $500,000 by 2028. He attributes these expectations to favorable regulatory changes under the Trump administration, including the repeal of SAB 121, which lifted accounting restrictions for companies holding digital assets.
In summary, Kendrick’s forecast presents a compelling case for Bitcoin’s long-term growth, with a mixture of regulatory developments and infrastructure improvements leading to significant price appreciation.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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