Bitcoin Projected to Hit $500,000 by 2028, Standard Chartered Forecasts
In a bold prediction, Standard Chartered has forecast that Bitcoin could reach a staggering $500,000 by the end of 2028. This projection, representing a 407% increase from current prices, is primarily driven by two key factors: improved investor access and reduced volatility.
Geoff Kendrick, an analyst at Standard Chartered, anticipates a steady annual increase of $100,000 in Bitcoin’s price until 2029. This optimistic outlook comes as the cryptocurrency market continues to evolve and mature.
The forecast points to enhanced investor access as a crucial driver of Bitcoin’s potential growth. Under the Trump administration, measures to improve access are expected to boost institutional inflows significantly. The recent introduction of spot Bitcoin ETFs has already attracted $39 billion in inflows, drawing parallels to the success of gold exchange-traded products from 2004.
Volatility, long a concern for potential investors, is expected to decrease as the market stabilizes. The development of options trading and other market functions, coupled with more stable flows from ETFs, is predicted to contribute to this reduction. Standard Chartered estimates that Bitcoin’s three-month at-the-market volatility could drop from 55% to 45% over the next few years.
Bitcoin’s growing reputation as a haven and inflation hedge is also attracting traditional investors, further solidifying its role on Wall Street. This shift in perception is likely to contribute to increased demand and price appreciation.
Macroeconomic factors are also playing a role in Bitcoin’s favorable outlook. The recent drop in bond yields, particularly the 10-year Treasury yield falling below 4.50%, is seen as a positive sign for the cryptocurrency. This yield drop may indicate investor concerns about US growth amid recent tariff issues, potentially benefiting Bitcoin as an alternative investment.
While short-term volatility remains a factor, the long-term outlook for Bitcoin appears optimistic. The combination of improved access, reduced volatility, and evolving market dynamics is expected to support substantial price growth in the coming years.
As the cryptocurrency market continues to mature and integrate with traditional finance, all eyes will be on Bitcoin to see if it can meet these lofty projections and cement its place as a mainstream asset class.
