Standard Chartered reiterated its bullish outlook on bitcoin (BTC-USD, Financials), maintaining a price target of $200,000 by the end of 2025 and projecting a rise to $500,000 by 2028, according to Geoffrey Kendrick, head of digital assets research.

Kendrick said bitcoin serves as a hedge against systemic risks in both the private and government sectors, citing the cryptocurrency's decentralized ledger as a core factor behind its resilience. He pointed to examples such as the collapse of Silicon Valley Bank in 2023 and current concerns over U.S. Treasury market stability as illustrations of bitcoin's role during periods of financial stress.

Outside of major risk events, bitcoin's price movements have often tracked those of leading technology stocks, a group Kendrick referred to as the Magnificent Seven. He added that recent worries about the independence of the Federal Reserve, particularly regarding the potential replacement of Chairman Jerome Powell, represent another government-related risk that could benefit bitcoin.

The U.S. Treasury's 10-year term premium recently reached a 12-year high, and Kendrick said bitcoin's correlation with the premium has strengthened significantly since early 2024. Although bitcoin has recently lagged the rise in the term premium, Kendrick attributed the divergence to market fears that tariffs could harm technology stocks, which typically influences bitcoin's performance.

Kendrick said he expects bitcoin to reach new all-time highs if concerns about the Federal Reserve's autonomy continue to intensify. He also emphasized that bitcoin's investment narrative is dynamic and changes over time, supporting its multiple roles within diversified portfolios.

Despite recent underperformance, Kendrick reiterated Standard Chartered's positive long-term view on bitcoin, highlighting macroeconomic pressures and systemic risks as catalysts for future growth.