Bitcoin Could Hit $500,000 by 2028, Says Standard Chartered

Analyst Geoff Kendrick predicted in a note on February 5 that institutional adoption will continue to accelerate as cryptocurrencies become more accessible under Trump’s administration.

Business Insider reports that Kendrick expects Bitcoin’s volatility to decrease over time, which would encourage investors to increase their portfolio allocations to crypto. According to the analyst, Bitcoin’s price fluctuations may decline from its current level of 55% to 45%.

In 2025, Bitcoin could reach $200,000, Kendrick estimates. His projection is based on a comparison with gold’s price surge between November 2004 and September 2011. During this period, the ETP (Exchange-Traded Product) market matured, driving gold’s price up by approximately 4.3 times.

We think a similar increase in BTC ETFs is likely as that market matures, which we expect will happen over a much shorter two-year period than the seven-year timeframe for gold ETPs,

Kendrick wrote. 

For the record, the U.S. SEC approved Bitcoin ETFs in January 2024. These exchange-traded funds are a type of ETP, an investment fund that trades on stock exchanges, similar to stocks.

ETPs are a general category, while ETFs are their most common type. ETFs own the underlying asset, meaning a Bitcoin ETF actually holds Bitcoin (or contracts representing it).

Kendrick also mentioned that the digital asset market remains underdeveloped compared to traditional financial markets. However, this is expected to change over time.

What’s the Crypto Market’s Current State? 

Currently, the crypto market is undergoing a correction after reaching all-time highs before President Trump’s inauguration on January 20, 2025. One reason is that the community's expectation for quick policy changes and the establishment of a national crypto reserve hasn’t materialized yet.

In addition, prices fell when Trump announced increased taxes on imported goods. This raised concerns about higher costs for businesses and potential economic slowdowns. Investors tend to react negatively to such uncertainty, leading to sell-offs in riskier assets, including cryptocurrencies.

At the time of writing, the total crypto market cap stands at over $3.24 trillion. Bitcoin trades at around $99,100, 9% down from its all-time high of $109,114 reached on January 20, according to CoinMarketCap.

Despite the current struggles, the market is expected to see a long-term rise. Standard Chartered predicts that after a possible further correction, Bitcoin’s next milestone will be $130,000.

New regulations may take time, but based on current actions, Trump’s administration appears to be on the path to fulfilling its promises.

Among the major steps is The Crypto Task Force, led by Hester Peirce, who recently listed the top priorities of the initiative.

The U.S. government’s evolving stance on digital assets will play a crucial role in shaping market sentiment. While some investors are disappointed by the lack of immediate policy shifts, the formation of the Crypto Task Force and growing discussions on national crypto reserves suggest that regulatory progress is underway.

As new policies unfold, greater clarity and strategic initiatives could reignite bullish momentum, potentially paving the way for Bitcoin to reach new all-time highs.

Related: Is Bitcoin’s Four-Year Cycle Breaking? Bitwise Weighs In