- Institutional Adoption and Regulatory Developments Could Drive Bitcoin’s Long-Term Growth
Geoffrey Kendrick, head of digital assets research at Standard Chartered, recently outlined factors that may propel Bitcoin’s value upward in the coming years. While acknowledging recent market volatility, Kendrick emphasized that institutional participation and clearer regulations could stabilize the crypto market and reduce risks associated with security breaches, such as the recent $1.5 billion hack on Bybit.
Kendrick highlighted the growing involvement of major financial institutions, including Standard Chartered and asset managers like BlackRock, in crypto-related products such as ETFs. He suggested that this trend, combined with anticipated U.S. regulatory progress on stablecoins and anti-money laundering frameworks, could enhance market legitimacy and attract further institutional investment. These developments, he argued, might mitigate volatility and support gradual price appreciation.
Bitcoin recently dipped to a three-month low below $90,000, influenced by broader declines in global equities and geopolitical tensions, including the Russia-Ukraine conflict and uncertainty around tariffs. Kendrick noted that risk-sensitive assets like cryptocurrencies often struggle during periods of global instability. However, he expressed optimism that regulatory clarity and institutional engagement could shift market sentiment later in 2024.
Political dynamics also play a role in crypto’s trajectory. Former President Donald Trump’s pro-crypto stance, including an executive order to advance digital asset development, has been viewed favorably by investors. Additionally, crypto industry players have significantly contributed to political campaigns, with nearly half of corporate donations in the 2024 cycle supporting pro-crypto candidates.
While Kendrick’s analysis includes ambitious price projections, his broader focus remains on structural shifts—such as institutional adoption, regulatory evolution, and political support—as key drivers for Bitcoin’s potential growth in the years ahead.