Standard Chartered predicts Bitcoin could reach $200,000 by 2025, citing growing concerns over Federal Reserve independence and Bitcoin’s role as a financial hedge. With strong market growth and bullish patterns, Bitcoin remains appealing amidst economic volatility. Analysts forecast Bitcoin could surge to $500,000 by 2028, reinforcing its status as a secure investment.
Standard Chartered has projected that Bitcoin (BTC) may reach a price of $200,000 by 2025, driven primarily by the cryptocurrency’s function as a safeguard against increasing financial instability. Analysts suggest this rise is largely due to prevailing market volatility, particularly relating to traditional financial instruments influenced by the Federal Reserve’s current independence issues.
Geoff Kendrick from Standard Chartered highlights Bitcoin’s decentralized structure, which enhances its appeal during times of economic uncertainty. The market atmosphere worsened following presidential remarks threatening the removal of the Fed chair, raising concerns about the Fed’s integrity. Such turbulence has coincided with a heightened yield premium on U.S. Treasury bonds, mirroring the positive price trend of Bitcoin.
At the time of reporting, Bitcoin was trading at approximately $91,590 and had demonstrated a bullish reversal via a falling wedge pattern. A price target of $200,000 suggests a potential increase of 125%. Factors such as institutional adoption and Bitcoin’s capability to withstand economic disruptions bolster this outlook, reinforcing its status as a safe asset following crises like the 2023 Silicon Valley Bank incident.
The uncertainty surrounding the Federal Reserve also contributes to Bitcoin’s growth, as fears over central bank independence encourage investments in alternatives. Although Bitcoin initially trailed the rising premium, Kendrick anticipates it will soon outpace these concerns, maintaining an upward trajectory independent of central authority influences.
Kendrick’s forecast extends further, estimating Bitcoin could soar to $500,000 by 2028 as it solidifies its reputation as a financial hedge. Previous forecasts by Standard Chartered have proven accurate, including their earlier prediction of Bitcoin reaching $100,000 by late 2024 fuelled by institutional investments.
With a current market cap of approximately $1.7 trillion, Bitcoin requires a price increase to $200,000 to claim a stronger position among mainstream assets, projecting a market cap of $3.8 trillion. Moreover, both fundamental and technical analyses indicate continued upward momentum, with Bitcoin successfully breaking a significant downtrend and now testing resistance levels around $90,000 to $91,470.
Readers are reminded that cryptocurrency investments carry risks due to inherent price volatility. It is advisable to conduct thorough research or consult a cryptocurrency expert before making investment decisions.
Olivia Stephanie is a financial technology enthusiast focused on the convergence of traditional and digital finance, with expertise in cryptocurrency markets.
