Standard Chartered Bank reaffirmed its optimistic outlook for Bitcoin. The American bank predicts that the cryptocurrency will reach $200,000 by the end of 2025 and could hit $500,000 by 2028.
This projection is supported by the growing institutional and governmental interest in Bitcoin. This is especially through indirect investments in companies like MicroStrategy, which holds substantial reserves of the asset.
Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered, highlighted that recent filings with the US Securities and Exchange Commission (SEC) reveal a considerable increase in government entities acquiring exposure to Bitcoin proxies.
"My official forecasts for Bitcoin are $120,000 by the end of the second quarter, $200,000 by the end of 2025, and $500,000 by the end of 2028, all are well on track," said Kendrick.
Institutionalization of Bitcoin drives optimism.
In the first quarter, 12 government-related institutions, including US state pension funds and foreign central banks, increased their stakes in MicroStrategy. The movement totaled approximately 31,000 Bitcoin in shares.
Furthermore, the bank also noted a significant shift in investment patterns, with Bitcoin exchange-traded funds (ETFs) experiencing substantial inflows.
In the last five weeks, US spot Bitcoin ETFs registered net inflows totaling $7.2 billion, while gold ETFs saw outflows of $3.6 billion during the same period. This trend suggests a growing preference for Bitcoin as a safe-haven asset over traditional options like gold.
BTC Price (Last 24 Hours). Source: CoinGecko.
"The safe-haven rotation into ETFs continues, and since April 22, the high price of gold, gold ETPs have lost $3.6 billion and BTC ETFs have added $7.5 billion," said Kendrick. "The recently disclosed 13Fs showed an expansion of government buying of BTC proxies, and this likely continued in the second quarter," noted the executive.
Moreover, Kendrick also observed that these investments often arise from regulatory restrictions that prevent direct ownership of Bitcoin, leading entities to seek alternatives for exposure.
In this way, Kendrick noticed that some government-related entities are increasing their exposure to Bitcoin indirectly, such as through investments in companies that hold substantial Bitcoin reserves. This trend may be influenced by regulatory restrictions that limit direct ownership of Bitcoin by these entities.
Thus, the correlation between Bitcoin's performance and macroeconomic factors, particularly the US Treasury yield premium, also gains importance.
He explained that the high yield premium, influenced by factors such as the weakness of Japanese Government Bonds (JGB), contributes to Bitcoin's appeal amid the risks of the traditional financial sector.
In addition to the target of $200,000 for 2025, Standard Chartered maintains a long-term projection of Bitcoin reaching $500,000 by 2028. This outlook is supported by the expectation of continued favorable regulatory developments and increased institutional adoption.
The article 'American Bank Predicts Bitcoin at $200,000 by December' was first seen on BeInCrypto Brazil.
