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Standard Chartered’s optimistic cryptocurrency analyst maintains that bitcoin’s value could reach $500,000 during Donald Trump’s term — despite a recent downturn that has dropped the leading digital currency to a three-month low.
Geoffrey Kendrick, who leads digital assets research at Standard Chartered, shared with CNBC his projection that bitcoin will achieve a price of $200,000 this year before increasing further in the subsequent years.
“What’s essential within the crypto space is the involvement of traditional financial institutions, like
Standard Chartered
, along with
BlackRock
and others that currently manage ETFs, to truly engage,” Kendrick noted in an interview on CNBC’s “Squawk Box Europe” on Thursday.
“As the sector becomes more institutionalized, it should become safer,” he added, pointing out that this development should reduce negative reporting — such as the recent $1.5 billion attack on cryptocurrency exchange Bybit.
This momentum in crypto adoption among institutions, along with some “regulatory clarity” in the U.S., should contribute to decreased volatility in the long run, Kendrick elaborated.
“This should boost medium-term prospects, with bitcoin projected to reach $200,000 this year, and $500,000 before Trump’s term concludes,” Kendrick stated to CNBC.
Kendrick commented that the key factor needed for major financial entities to gain trust in investing in bitcoin and other cryptocurrencies is the stabilization of prices alongside heightened regulatory clarity.
Earlier this week, bitcoin plunged to a three-month low, falling below $90,000 amid declines in the global equity markets. As of Thursday, the token was priced at $86,418, representing a drop of approximately 20% from its peak of $108,786 in January, as reported by CoinGecko.
According to Kendrick at Standard Chartered, the broad decline in digital currencies can be attributed to uncertainties regarding tariffs and the ongoing resolutions of significant conflicts, such as the Russia-Ukraine and Israel-Gaza situations.
“Risk assets typically do not respond well to uncertainty, which has been evident with the decline in U.S. tech stocks,” Kendrick remarked, noting that the breach of Bybit also negatively impacted the overall sentiment toward cryptocurrencies.
He anticipates that the crypto landscape will become more favorable later in the year, as traders await significant regulatory advancements within the industry, including new guidelines on stablecoins and anti-money laundering initiatives.
“This will further legitimize the sector, encouraging more U.S. banks to participate. You’ll see larger institutions in the U.S. continuing to push forward,” Kendrick stated.
Kendrick was among several market analysts who forecasted a doubling in bitcoin’s value this year to reach $200,000. Bitcoin notably surpassed the critical $100,000 benchmark in December after Trump’s election win.
Cryptocurrency advocates view Trump favorably due to his endorsement of digital currencies. In January, he enacted an executive order aimed at advancing cryptocurrency innovation in the U.S. and establishing a national digital asset reserve.
Crypto investors, organizations, and executives made up nearly half of the corporate contributions in the 2024 election cycle, with some donating tens of millions of dollars to Trump’s campaign.
