The recent announcement by Donald Trump regarding the creation of a “strategic crypto reserve” sent shockwaves through the market, prompting a significant surge in volatility. According to Geoff Kendrick of Standard Chartered, this move puts Bitcoin back on track to reach $500,000 by 2028. This prediction isn’t new, as Kendrick had previously suggested that Bitcoin could hit this milestone, but the latest development has reignited the conversation.
Trump’s instruction to create a strategic reserve of cryptocurrencies, including Bitcoin, Ethereum, and other altcoins, has the potential to significantly impact the US financial policy. The announcement led to a 12% increase in Bitcoin’s value, reversing the downturn seen earlier in the week. Kendrick believes that this move will reinforce his prediction of Bitcoin reaching $500,000 by 2028, a price point that seems increasingly plausible given the growing acceptance of cryptocurrencies as a viable asset class.
The analyst’s projection is based on the idea that Bitcoin will continue to consolidate its role in the global financial system. He predicts that the price of Bitcoin will reach $200,000 by the end of 2025, $300,000 in 2026, $400,000 in 2027, and ultimately $500,000 in 2028. These projections are contingent on increased access for investors and lower volatility, factors that will be crucial in supporting the growth of Bitcoin in the coming years.
Kendrick’s comments were reported by The Block, and he emphasized that the recent market movements reinforce his prediction that Bitcoin will reach $500,000 by 2028. He believes that Bitcoin is evolving into a stable asset within global investment portfolios, serving as a hedge against the challenges posed by the traditional financial system. The growing acceptance of Bitcoin and other cryptocurrencies by institutional investors will be a key factor in driving up their value.
The announcement by Trump has also sparked interest in other cryptocurrencies, with SOL, XRP, and ADA experiencing significant gains. Ethereum, which will also be included in the strategic reserve, saw a notable increase in value as well. Kendrick suggested that Trump’s plan could motivate individual states to develop their own Bitcoin reserves, leading to a substantial increase in state-held BTC. Currently, the US government is estimated to hold around 200,000 BTC, primarily derived from seizures and legal proceedings.
This development comes at a critical juncture, with a crypto summit scheduled to take place at the White House later this week. The event is expected to define new regulatory guidelines for the sector, and markets anticipate that the Trump administration will adopt more favorable policies for the industry. Kendrick compared Trump’s stance on cryptocurrencies to the Federal Reserve’s intervention in traditional markets, known as the “Fed put.” Under this approach, investors perceive the administration’s policies as a safety net for the crypto industry, reducing the risk of sudden price drops.
“The elimination of potential negative scenarios is key,” Kendrick stated. “After a week where $3 billion in long positions and $2.5 billion in ETF sales were liquidated, the markets can now take a more bullish turn.” The impact of this strategy remains to be seen, but the optimism in the crypto market suggests that investors expect the Trump administration to push for favorable measures. If this translates into clearer regulations and increased institutional adoption, Bitcoin and other cryptocurrencies could solidify their position as key assets in the global economy.
As the situation continues to unfold, it’s essential to remember that investments in cryptocurrencies are not regulated in some countries and may not be suitable for retail investors, who could lose their entire investment. It’s crucial to consult local laws before investing and to approach the market with caution.
