Standard Chartered estimates that before Donald Trump’s second term ends, the price of Bitcoin might soar to an amazing $500,000. Head of digital assets research for the bank, Geoffrey Kendrick, is still quite positive about the direction Bitcoin is headed and projects it will reach $200,000 just this year.
Kendrick credits rising institutional acceptance and the possibility of better rules for explaining this possible development. As more conventional financial organizations, such as Standard Chartered and BlackRock, include Bitcoin in their holdings, he thinks the cryptocurrency will become more stable and safe. This could potentially alleviate concerns stemming from recent high-profile security breaches, particularly the $1.5 billion hack of the cryptocurrency exchange Bybit.
Organizational power and regulatory effects
Major financial players’ increasing engagement in the cryptocurrency market is likely to boost Bitcoin’s legitimacy and long-term stability. More regulatory certainty, according to Kendrick, will offer institutional investors the much-needed structure and help to lower market volatility and promote more acceptance.
As regulatory uncertainty progressively declines, Bitcoin might appeal even more to major investors. As the crypto market develops, institutional involvement is probably going to raise prices, therefore backing Kendrick’s audacious projection.
Market fluctuations and the relationship between Bitcoin and economic events
Though it showed great increases early in the year, Bitcoin has shown quite erratic movements. Rising trade concerns between the U.S., China, Mexico, and Canada caused the bitcoin to plummet to about $80,000 following exceeding $109,000 in January. The decision of President Trump to continue tariffs has added more market uncertainty, which influences the price swings of Bitcoin even more.
According to market observers, the way Bitcoin responds to world economic policy reveals its increasing link with conventional financial markets. Some analysts, however, contend that such pullbacks are typical in bullish cycles and stress that Bitcoin is still moving generally upward.
The Path of Bitcoin: Under Trump’s Leadership
Investors hope that legislative developments could help Bitcoin flourish even more under Trump’s more crypto-friendly government. As the U.S. government shows growing curiosity in digital assets and blockchain technologies, institutional involvement in the crypto market might soar.
Kendrick is still sure that the price of Bitcoin will not just bounce back but will keep accelerating. Bitcoin might very well reach the expected $500,000 barrier before Trump’s administration ends as rules are clearer and conventional financial institutions increase their engagement in the crypto sector.
For those who enjoy cryptocurrencies and invest in them, the next years could be crucial in determining the direction of Bitcoin and the larger digital asset market.
