Standard Chartered Predicts Bitcoin Could Hit $500,000 by 2029

Standard Chartered predicts Bitcoin could reach $500,000 by 2029, driven by rising institutional interest. Growing uncertainty over government bonds as protective assets has shifted investor focus towards Bitcoin, which has recently seen significant price increases.

Standard Chartered has stirred the cryptocurrency world with its bold prediction for Bitcoin, estimating that it could reach a whopping $500,000 by the end of Donald Trump’s presidency in 2029. Geoffrey Kendrick, the bank’s Global Head of Digital Assets Research, pointed to increasing financial institutions’ exposure to Bitcoin as a crucial factor driving this surge, suggesting that institutional investments will play a large role in this price goal.

Kendrick explained that new data from the SEC’s Q1 13F filings demonstrates a growing trend among institutions investing in Bitcoin. The filings provide insights into the holdings of investment firms managing over $100 million, which is pivotal since it shows evidence of increased institutional interest in Bitcoin. He stressed, “The quarterly 13F data is the best test of our thesis that BTC will attract new institutional buyer types as the market matures.”

Interestingly, Kendrick remarked that while some investment firms reduced their exposure to exchange-traded funds (ETFs), more institutions are now attracted to Bitcoin indirectly through Strategy’s stock. This shift suggests that while there are restrictions on direct Bitcoin holdings, many government entities are seeking exposure via shares of companies that actively invest in Bitcoin.

Of note, Strategy’s unique approach to acquiring Bitcoin via debt and equity makes its stock seem an appealing substitute for Bitcoin investments, particularly for conservative institutional investors. This move signals a perhaps broader acceptance of Bitcoin among traditional corporations, who appear to be eager to engage with this cryptocurrency in a more robust manner.

Separately, KKR & Co. weighed in, claiming government bonds are losing their grip as a safe haven for investors. They observed that in times of market volatility, these bonds, traditionally viewed as shock absorbers, are faltering, with both US and Japanese bond yields rising sharply. KKR’s macro expert Henry McVey described the troubling situation where both stocks and government bonds have been declining together, causing unease among investors.

The recent surge in Japanese government bond yields hitting their historical high of 3.15%, coupled with a rise above 5% for the US Treasury yield, further demonstrates this trend. This rise signals a major sell-off which is shifting perspectives on risk management within portfolios.

As KKR pointed out, the simultaneous drop in value for both offensive assets like stocks, and defensive ones like bonds, is giving many investors reason to consider alternatives. This scenario could push investors toward Bitcoin and gold as they seek refuge from the instability in traditional safe havens.

Indeed, Bitcoin spiked briefly above $107,000 recently, closing in on its record high of just over $108,000. With dramatic increases seen just since March, when Bitcoin hovered around $79,500, this crypto is still on the minds of many market watchers.

However, as always, it’s worth remembering that investing in cryptocurrency carries its risks. Both the markets and specific instruments have inherent uncertainties, and potential investors should do thorough research before diving in. As a reminder, FXStreet and its authors do not offer personalized investment advice, and all risks tied to investments ultimately rest with the investor.