Bitcoin’s recent price drop has sparked concerns in the market, but Standard Chartered’s Head of Digital Asset Research, Geoffrey Kendrick, remains bullish. In an interview with CNBC’s Street Signs on February 27, Kendrick reiterated his prediction that Bitcoin (BTC) will reach $200,000 this year and could climb to $500,000 before the end of President Donald Trump’s term.
Bitcoin Price Drop Amid Market Uncertainty
Bitcoin’s decline comes amid geopolitical tensions, trade concerns, and crypto sector uncertainties. Kendrick pointed to several factors influencing investor sentiment, including:
- Regulatory shifts under the Trump administration, such as the removal of SAB 121, which had hindered financial institutions.
- A lack of a strategic Bitcoin reserve but a shift toward a “stockpile” approach, legitimizing state and sovereign Bitcoin holdings.
- Broader macroeconomic risks, including trade tensions with Canada, Mexico, and the EU and conflicts in Ukraine and the Middle East.
Additionally, within the crypto ecosystem, events such as the Bybit hack and Solana meme coin scams have contributed to short-term negative sentiment.
Bitcoin’s Role as a Diversifier & ETF Outflows
Kendrick addressed concerns about Bitcoin’s correlation with equities, acknowledging that in times of sharp market declines, BTC often moves alongside risk assets. However, he maintained that, in the medium to long term, Bitcoin remains a strong hedge against traditional financial risks.
One major factor contributing to Bitcoin’s volatility has been the significant outflows from spot Bitcoin ETFs. Kendrick highlighted:
- $3 billion in Bitcoin ETF outflows in the past week alone.
- A total of $40 billion in inflows over the past 12 months.
- Post-election Bitcoin buyers now facing $2 billion in paper losses, leading to panic selling and increased volatility.
$200,000 Target Still in Play
Despite the recent drop, Kendrick remains confident in Bitcoin’s long-term growth potential, citing the need for:
- Stronger institutional participation – As major financial players like Standard Chartered and BlackRock continue developing better custody solutions, Bitcoin will become less prone to major hacks and damaging headlines.
- Regulatory clarity – Kendrick expects new rules on stablecoins and KYC to encourage institutional and sovereign capital inflows.
- Sovereign wealth fund investments – Abu Dhabi’s Sovereign Wealth Fund recently purchased 4,700 BTC-equivalent shares in the BlackRock ETF, signaling growing interest from long-term institutional investors.
Kendrick concluded by stating:
“As the industry becomes more institutionalized, it should be safer. Hopefully, we get regulatory clarity in the U.S., which should add to that medium-term upside potential – Bitcoin up to $200,000 this year and $500,000 before Trump leaves office.”
Disclaimer:
This article is for informational purposes only and does not constitute financial, legal, or investment advice. Readers should conduct their own research before making investment decisions.
