Despite Recent Setbacks and a Significant Selloff That Brought Bitcoin to a Three-Month Low

Despite recent setbacks and a significant selloff that brought Bitcoin to a three-month low, Standard Chartered maintains a strong bullish position on BTC market predictions.

Standard Chartered remains bullish on Bitcoin despite recent setbacks and a significant selloff that brought BTC to a three-month low.

According to the bank’s digital assets research head, Geoffrey Kendrick, Bitcoin could reach $500,000 by the end of Donald Trump’s presidency. Additionally, BTC price might hit $200K by the end of 2025.

Bitcoin Still Bullish Despite Hitting New Low

As President Donald Trump’s administration brings high volatility for risk assets in its first month, it could ultimately benefit Bitcoin.

At least that’s the prediction from Standard Chartered, which sees the price of BTC reaching $200,000 by this year. By the time President Trump’s second term comes to an end, the cryptocurrency could surge to $500,000.

This surge will be driven by increased institutional adoption and the possibilities of clearer regulations, according to Kendrick, who spoke in an interview with CNBC.

The crypto ecosystem would benefit from the involvement of traditional financial institutions like Standard Chartered, BlackRock, and others who manage ETFs, as their participation is crucial, he remarked.

As the industry grows more institutionalized, it should become safer and likely attract fewer negative headlines, such as the recent $1.5 billion hack at the cryptocurrency exchange Bybit last week.

He also noted that the rising adoption of cryptocurrencies by institutions, along with some regulatory clarity in the U.S., is expected to gradually reduce market volatility over time.

Earlier this week, Bitcoin dropped to a three-month low, falling below $90,000 amidst declines in global equity markets, as per CoinGecko data.

On Thursday, the Bitcoin price made it to a trading value of $82,256, marking a roughly 20% decrease from its January peak.

Kendrick noted that crypto market has broadly declined due to uncertainties surrounding tariffs and the resolution of significant conflicts like those in Russia-Ukraine and Israel-Gaza.

Bitcoin’s Outlook Remains Strong Despite Correction

Bitcoin recently dipped below $82,000, hitting a three-month low in response to broader market declines.

The market uncertainty is evident in Bitcoin’s Short-Term Holder Spent Output Profit Ratio (STH-SOPR), which hovers near the critical 1.0 breakeven level. Breaking above this threshold historically signals bullish momentum, while failure could trigger another wave of selling, according to a report from Glassnode.

The STH-SOPR ratio, ranging from 0.98 to 1.04, closely followed Bitcoin’s price movements. Recently, it indicated that short-term holders are uncertain, affecting whether Bitcoin reaches new highs or faces further declines.

However, Julien Bittel, a Global Macro Investor, described Bitcoin’s recent price drop as a “normal occurrence in bull markets,” particularly after the substantial price surge that followed the US presidential election.

With Bitcoin trading at a lower price, it presents an attractive opportunity for whales and institutions to buy more during this dip. As buying interest increases, the price of BTC could experience a robust recovery, potentially initiating another bull run in the upcoming weeks.