Following recent challenges and a major selloff that has pushed Bitcoin to a three-month low, Standard Chartered remains confidently bullish on BTC market forecasts. Geoffrey Kendrick, the bank’s head of digital assets research, predicts that Bitcoin will soar to $500,000 before the end of Donald Trump’s presidency. Furthermore, he anticipates that the BTC price could hit $200,000 by the close of 2025.
Bitcoin Remains Optimistic Despite New Low
Standard Chartered believes that while the first month of US President Donald Trump’s term has brought significant volatility for risk assets, his administration may ultimately be advantageous for Bitcoin.
In a CNBC interview, Kendrick projected that Bitcoin’s price will reach $200,000 this year and could rise to $500,000 by the end of Trump’s second term, driven by growing institutional adoption and clearer regulatory measures.
Kendrick emphasized that the entrance of traditional financial entities, such as Standard Chartered, BlackRock, and others managing ETFs, would positively impact the crypto ecosystem, noting their involvement is essential.
He also pointed out that as the industry becomes more institutionalized, it is expected to grow safer, thus attracting fewer negative headlines, such as the recent $1.5 billion hack at the cryptocurrency exchange Bybit.
Additionally, he mentioned that the increasing acceptance of cryptocurrencies among institutions, coupled with regulatory clarity in the U.S., should gradually lessen market volatility over time.
Earlier this week, Bitcoin fell to a three-month low, dipping below $90,000 amidst declines across global equity markets, according to CoinGecko data. On Thursday, it traded at $82,256, reflecting approximately a 20% drop from its January peak.
Kendrick observed that the crypto market has largely retracted due to uncertainties regarding tariffs and the resolution of major conflicts, including those in Russia-Ukraine and Israel-Gaza.
Bitcoin’s Future Looks Bright Despite Recent Corrections
Bitcoin recently fell below $82,000, reaching a three-month low in response to the broader market downturn. This market uncertainty is highlighted by Bitcoin’s Short-Term Holder Spent Output Profit Ratio (STH-SOPR), which is currently near the critical 1.0 breakeven level. According to a report from Glassnode, surpassing this threshold historically indicates bullish momentum; failure to do so may spark another round of selling.
The STH-SOPR ratio, fluctuating between 0.98 and 1.04, has closely mirrored Bitcoin’s price shifts. Recently, it has signaled uncertainty among short-term holders, impacting Bitcoin’s potential for new highs or further declines.
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However, Julien Bittel, a Global Macro Investor, characterized Bitcoin’s recent price dip as a “normal occurrence in bull markets,” particularly following the significant price increase that ensued after the US presidential election.
With Bitcoin now trading at lower prices, it presents a compelling opportunity for whales and institutions to accumulate more during this dip. As buyer interest rises, the price of BTC could see a strong recovery, potentially sparking another bull run in the weeks ahead.
