Zinger Key Points
- Experts highlight geopolitical risks, with U.S.-China trade tensions adding uncertainty to Bitcoin’s near-term market outlook.
- Kendrick attributes Bitcoin’s potential growth to increased access, reduced volatility, and the positive impact of regulatory clarity.
- Next: Access Our New, Shockingly Simple 'Alert System'
Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered on Wednesday predicted that Bitcoin BTC/USD could reach $500,000 before the end of Donald Trump's term.
What Happened: Kendrick attributes this forecast to two key factors: improved investor access to Bitcoin under the current administration and a gradual decline in volatility due to maturing market infrastructure.
"Access is improving under the Trump administration. Institutional inflows will continue to gather pace," Kendrick wrote, highlighting the impact of spot Bitcoin ETFs and expanding options markets.
"This combination—more access, lower vol—is enough to drive Bitcoin to $500,000 before Trump leaves office,” he added.
Meanwhile, institutional inflows into Bitcoin and Ethereum ETFs further underline the growing adoption of digital assets.
On Feb. 4, Bitcoin spot ETFs recorded a net inflow of $341 million, with BlackRock's IBIT ETF alone receiving $249 million.
Ethereum ETH/USD ETFs saw a net inflow of $308 million, marking the fourth consecutive day of positive flows for the asset.
These numbers highlight increasing confidence among institutional investors, despite recent market turbulence.
Kendrick said that improved access through vehicles like ETFs is critical for Bitcoin's long-term trajectory, as it provides broader exposure for traditional finance participants.
Also Read: EXCLUSIVE: Anthony Scaramucci Warns Donald Trump’s Crypto Promises May Be A ‘Mirage’
Why It Matters: Recent volatility in traditional and crypto markets has tested investor sentiment.
The U.S.-China tariff war continues to dominate headlines, creating uncertainty across asset classes. While Bitcoin has shown resilience, holding above the $90,000 mark, concerns about geopolitical shocks remain.
"The delay in tariffs against Mexico and Canada has provided some relief to crypto markets," QCP Capital noted but cautioned that Bitcoin is still vulnerable to negative price shocks given the lack of near-term catalysts.
The firm also highlighted the ongoing development of regulatory frameworks, such as stablecoin legislation and a Strategic Bitcoin Reserve (SBR) task force, as long-term positives for the crypto industry.
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