Key Notes
- Standard Chartered’s Geoffrey Kendrick predicts Bitcoin will hit $500,000 by Trump’s presidency end, with $200,000 expected by late 2025.
- Despite Bitcoin's 20.60% drop to $84,300, institutional adoption from Standard Chartered and BlackRock is set to drive long-term growth.
- Bitcoin's Short-Term Holder SOPR hovers near 1.0; a breakout could signal bullish momentum, while a drop may trigger further sell-offs.
Bitcoin may have stumbled , but Standard Chartered remains unfazed in its long-term bullish outlook. Geoffrey Kendrick, the bank’s head of digital assets research, projects that Bitcoin will surge to $500,000 before Donald Trump’s presidency ends. That’s despite a sharp selloff that dragged the cryptocurrency to a three-month low.
Kendrick anticipates Bitcoin reaching $200,000 by late 2025, marking a critical threshold before advancing further. He emphasized that institutional participation, particularly from major financial entities such as Standard Chartered and BlackRock, will play a pivotal role in that trajectory.
“Within the crypto ecosystem, what we need are traditional financial players, like Standard Chartered, like BlackRock and others that have the ETFs now to really step in,” he told CNBC’s Squawk Box Europe.
This rise, he believes, will be driven by institutional adoption and increasing regulatory clarity. As major financial institutions like BlackRock and Standard Chartered deepen their involvement, he expects Bitcoin to stabilize, making the asset class more attractive for mainstream investors.
Crypto Market Hit by Declines, But Outlook Remains Strong
Bitcoin recently dropped below $92,000, hitting a three-month low in response to broader market declines. At the time of writing, the world’s largest cryptocurrency was trading at $84,300, about 20.60% lower than its record $106,136 high from January.
Several factors contributed to the downturn, including a slump in US tech stocks and a massive $1.5 billion hack targeting the crypto exchange Bybit. “Risk assets don’t like uncertainty, and so that’s what we’ve seen,” Kendrick said, emphasizing how market sentiment plays a crucial role in Bitcoin’s short-term movements.
Despite the recent decline, he remains confident that regulatory improvements will boost institutional participation, reducing volatility over time. He points to potential new US regulations around stablecoins and anti-money laundering laws as key drivers of future legitimacy and adoption.
Bitcoin Faces Key Market Test as Short-Term Holders Struggle
Market uncertainty is reflected in Bitcoin’s Short-Term Holder Spent Output Profit Ratio (STH-SOPR), which is hovering near the critical 1.0 breakeven level. A report from Glassnode on February 24, 2025, suggests that breaking above this threshold historically signals bullish momentum, while failure could trigger another wave of selling.
#Bitcoin ’s STH-SOPR (7D SMA) is testing breakeven (1.0) once again. Historically, breaking above 1.0 confirms a shift in momentum, while failure to do so often leads to renewed sell pressure. The last attempt in early Jan was successful but short-lived: https://t.co/JqLGNmXP1K pic.twitter.com/VAK6cb9x5N
— glassnode (@glassnode) February 24, 2025
Over the past few months, STH-SOPR has fluctuated between 0.98 and 1.04, aligning closely with Bitcoin’s price movement. When the ratio peaked in November and December, Bitcoin followed with a steady climb towards $80,000 before cooling off. Now, the indicator suggests that short-term holders are hesitating between taking profits and enduring further market dips.
A decisive move above 1.0 could reignite buying pressure, possibly pushing Bitcoin towards its all-time highs. However, if the ratio dips further, additional selling could delay any meaningful recovery. Glassnode data also shows that short-term traders have been offloading Bitcoin at losses, putting more stress on the market.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
