Key Points
- Kendrick is confident in Bitcoin’s long-term prospects, due to multiple reasons.
- Currently, BTC is trading above $98,000.
Standard Chartered’s Geoffrey Kendrick is optimistic about Bitcoin’s long-term price trajectory, predicting that the digital asset could reach $500,000 by 2028, due to a few main catalysts: growing investor access, declining volatility for BTC, and the prospect of central banks considering BTC investments.
Kendrick is Standard Chartered’s global head of digital assets research.
Increasing Investor Access- Institutional Inflows
Kendrick noted that access to Bitcoin and crypto is improving under the Trump administration and institutional inflows will continue to gather pace. According to him, the volume will gradually come lower as the quality of flows improves and other infrastructures such as options markets expand.
In a new report today, Kendrick noted that the launch of Bitcoin ETFs in January 2024 has significantly expanded investor access, bringing over $40 billion in net inflows so far, according to SoSoValue data.
Kendrick compared Bitcoin ETFs to gold ETPs, saying that the precious metal’s price surged by over 4 times after the ETPs were introduced in 2004.
He expects that Bitcoin ETFs will follow a similar path but within two years, instead of seven.
Kendrick said that as the volume falls, Bitcoin’s share of an optimized two-asset portfolio with gold increases. According to him, investors’ access and lower volume should lead to price appreciation longer-term, as portfolios continue to move towards their optimal/logical state.
Bitcoin Volatility to Decline
Kendrick also sees a declining volatility for Bitcoin as a catalyst for surging prices.
According to him, BTC’s volatility will decline as the ETF market continues to mature and as the financial infrastructure improves, especially considering the expansion of options markets and institutional counterparties.
Central Banks Could Consider Bitcoin Investments
Kendrick also sees more upcoming improvements under the Trump administration, especially following the repeal of SAB 121 which lifted accounting restrictions for companies holding crypto.
More than that, Trump’s executive order to evaluate a crypto stockpile suggests an encouragement for central banks to consider Bitcoin investments. It’s also worth noting that yesterday, during his press conference, David Sacks confirmed an assessment of a potential Bitcoin Strategic Reserve in the US.
Given all these developments, Kendrick said that they’re in line with previous price predictions, and Bitcoin could reach $200,000 by the end of this year, $300,000 by the end of 2026, $400,000 by the end of 2027, and $500,000 by the end of 2028.
Today, Bitcoin is trading above $98,000, following a recent dip to $96,000 levels.
