By the conclusion of President Trump's term, Geoffrey Kendrick of Standard Chartered projects Bitcoin's value at $500,000.

According to Kendrick, the gain will coincide with a higher institutional Bitcoin exposure via Strategy's stock.

Rising government bond rates indicate their waning use as a risk asset countermeasure.

On Tuesday after Standard Chartered's Geoffrey Kendrick's confirmation of the bank's $500,000 price goal by 2029, citing increasing institutional and government exposure via Strategy's stock holdings, Bitcoin (BTC) momentarily soared over $107,000. As a hedge during risk-off times, government bonds are losing their efficacy, according a recent study published by KKR & Co. on increasing US and Japanese bond rates.

Standard Chartered's Global Head of Digital Assets Research Geoffrey Kendrick projects that Bitcoin will reach a historic $500,000 before US President Donald Trump's tenure ends in 2029.

Kendrick underlined that their argument is supported by the latest increase in Securities and Exchange Commission (SEC) Q1 13F data, which shows a surge in government and institutional awareness to Bitcoin.

"The quarterly 13F data is the best test of our thesis that BTC will attract new institutional buyer types as the market matures, helping the price reach our USD 500,000 target level," Kendrick stated in a Tuesday investor note.

Particularly those with more than $100 million in assets, 13F filings—mandated quarterly disclosures sent to the SEC revealing their US equities holdings—are required from investment managers.

Kendrick said that whilst those increasing exposure via Strategy shares were "very encouraging," ETF exposure among these institutions dropped in Q1. He said that the exposure stems from Strategy shares being seen as a substitute for Bitcoin investing.

"We believe that in some cases, MSTR holdings by government entities reflect a want to gain Bitcoin exposure where local regulations do not allow direct BTC holdings," he said.

The idea from Standard Chartered captures the increasing impact of Strategy's Bitcoin playbook on conventional businesses, many of whom are looking at direct or indirect BTC exposure.

Strategy's significant ownership and approach of acquiring Bitcoin via debt and equity offers have essentially positioned its shares as a proxy for Bitcoin exposure, therefore making it an easily available choice for institutional investors and even governments.

Low government bonds help Bitcoin.
Furthermore contributing to the change in interest in Bitcoin is declining trust in government bonds resulting from growing macroeconomic uncertainty.

A research paper by KKR & CO claims that government bonds are no longer functioning as protective investments on risk-off days during market declines.

"Government bonds are no longer fulfilling their role as the'shock-absorbers' in a conventional portfolio," said Henry McVey, head of global macro and asset allocation at KKR during risk-off days.

On Tuesday, Japan's 30-year government bond yield peaked at 3.15%, the highest it has ever risen to. After Moody's rating of the US, the 30-year US Treasury rate also momentarily exceeded the 5% psychological mark. Given government bond rates are inversely connected with their prices, the higher yields suggest more sell-offs among investors.

KKR pointed out that stock investors find it difficult to see treasuries as a safe haven given the drop in bond efficacy. This causes investors to be afraid because a comparable sell-off in equities and bonds occurs.

"CIOs and their boards are seeing their offensive assets, stocks and defensive assets, both decline in value at the same time that their local currency liabilities, which they traditionally have not hedged, increase in value too," McVey said.

Consequently, in such times of simultaneous bond and stock collapse, Bitcoin and Gold might profit as alternative safe havens.

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