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- Standard Chartered has a neutral outlook for global equities due to policy uncertainty and high volatility, but it is most optimistic about Bitcoin.
- The bank predicts that with the fall of government bonds, Bitcoin’s $500,000 price will be achieved.
Lately, we have seen the continuous adoption of Bitcoin (BTC), the largest digital asset by market capitalization. The relationship between the traditional finance space and the cryptocurrency market is mostly tightening by the day. Standard Chartered, a British multinational bank, is spearheading this optimism.
Geoffrey Kendrick, the bank’s Global Head of Digital Assets Research, believes that Bitcoin could reach $500,000 by 2029, when the second term of the first pro-crypto president, Donald Trump, ends.
Kendrick pointed to recent 13F filings, quarterly reports submitted to the SEC by investment managers with over $100 million in assets, as a key signal. These filings showed a notable uptick in institutional exposure to Bitcoin, not via Exchange Traded Funds (ETFs), but through equity holdings like MicroStrategy, a company well-known for using its balance sheet to accumulate large amounts of BTC.
“The 13F data is our best test of the thesis that Bitcoin will attract new types of institutional buyers as it matures,” Kendrick said in a Tuesday note to investors. “That process is already underway.” Interestingly, Kendrick noted that while ETF holdings dipped slightly in Q1, interest in MicroStrategy stock rose. Why? Because institutions, especially those restricted from buying Bitcoin directly, are using Strategy shares as a proxy for BTC exposure.
“In some cases, MSTR holdings by government entities reflect a desire to gain Bitcoin exposure where local regulations don’t allow direct BTC holdings,” he said.
To further support this analogy, Crypto News Flash recently reported that the Saudi Central Bank revealed that it holds 25,656 shares of MicroStrategy when it filed its Form 13F-HR with the U.S. Securities and Exchange Commission.
What’s Driving the Rush?
Another reason for Bitcoin’s growing appeal is that government bonds are losing their shine. Traditionally, they are viewed as safe-haven assets because they offer Stable returns through fixed interest payments, Principal protection, and Diversification, since bonds often rise when stocks fall. With inflation high and governments racking up debt, central banks often raise interest rates. When rates go up, bond prices fall. So instead of cushioning losses during market downturns, bonds can fall alongside stocks, leaving investors exposed on both fronts.
“During risk-off days, government bonds are no longer fulfilling their role as the ‘shock absorbers’ in a traditional portfolio,” Henry McVey, KKR’s Head of Global Macro and Asset Allocation, stated.
The data backs it up: Japan’s 30-year government bond yield spiked to a record 3.15%, while the U.S. 30-year Treasury yield briefly crossed 5% following Moody’s downgrade of the U.S. credit outlook. These sharp yield increases reflect a broad sell-off in bonds, and when bond prices fall alongside equities, investors start looking elsewhere.
Investors are turning to Bitcoin because it doesn’t move in lockstep with the broader market, making it a hedge in uncertain times. At the heart of its appeal is scarcity: there will only ever be 21 million Bitcoins, and because it is decentralized, with no central bank or government.
Earlier today, Bitcoin caught the attention of the market as it surged to 107,955, placing it less than 2% shy of its all-time high of 109,000. The asset has retreated a little bit to now trade at 106,463, reflecting a 2.79% increase in the past 7 days.
