Bitcoin (BTC) Primed for a Parabolic Rally Targeting $500,000 by 2028: Standard Chartered

Bitcoin is poised for a record-setting rally that could elevate its price to a staggering $500,000 by the end of 2028, according to Standard Chartered.

Banking giant Standard Chartered has predicted a record-setting rally for Bitcoin, anticipating that the cryptocurrency's price could soar to an astonishing $500,000 by the end of 2028. This projection is attributed to enhanced investor access and decreased volatility, as reported by Yahoo Finance.

In a strategic note released on Wednesday, Geoff Kendrick, an analyst at the company, highlighted these two factors as key contributors to a $100,000 annual increase in Bitcoin's value. Commencing from its current valuation, this progressive rise would lead to the achievement of the $500,000 benchmark, marking an impressive 407% increase.

Kendrick, who also serves as Standard Chartered's Global Head of Digital Assets Research, stated that while the short-term outlook for Bitcoin remains turbulent, the long-term trajectory is becoming increasingly clear. He pointed to the expanding access to Bitcoin that was facilitated by the Trump administration and the increasing institutional inflows as being essential to this optimistic perspective. Moreover, as the infrastructure supporting Bitcoin, including options markets, continues to expand, volatility is expected to decrease gradually.

Kendrick also touched upon Bitcoin's emerging role as a safe haven and a potential inflation hedge, which has attracted traditional investors and further integrated Bitcoin into the fabric of Wall Street. This trend is being bolstered by the recent introduction of spot Bitcoin ETFs, which have already seen $39 billion in inflows.

The crypto-friendly stance of the Trump administration is expected to further improve access, fostering a thriving ETF market that is comparable to the launch of gold exchange-traded products in 2004. “US gold prices rose 4.3x as the ETP market matured from November 2004 through September 2011. We think a similar increase in BTC ETFs is possible within a much shorter two-year period compared to gold's seven-year timeframe,” explained Kendrick, highlighting his forecast of Bitcoin reaching $200,000 by the end of 2025.

Kendrick observed that Bitcoin's volatility would likely ease in the coming years, similar to the evolution experienced by gold ETPs. The introduction of ETFs is expected to provide more stable market inflows, while the addition of market features such as options trading is anticipated to further diminish volatility over time.

Looking ahead, Kendrick predicted that Bitcoin's three-month at-the-market volatility could decline from its current 55% spot level to 45% over the next two to three years. This reduction in volatility would encourage investors to allocate a larger portion of their portfolios to Bitcoin, thus reinforcing the aspirational $500,000 valuation.

Despite a temporary stall in Bitcoin's rally due to some January policy discouragements, a recent positive indicator seems to have emerged for the crypto market. A decline in the 10-year Treasury yield below 4.50% reflects potential concerns about US growth due to recent tariff tensions under the Trump administration, positioning Bitcoin as an attractive alternative. “Even amidst tariff challenges, growth fear narratives prevail, suggesting a ‘win-win’ situation for Bitcoin,” remarked Kendrick in an additional commentary.

Source: IndexBox Market Intelligence Platform