Prediction of Rapid Growth in Crypto Market by Standard Chartered
Standard Chartered has put forward an ambitious outlook for the cryptocurrency market, envisioning a substantial expansion that could drive its market capitalization to $10 trillion by the conclusion of 2026. In a report shared with Decrypt, the UK-based bank has expressed confidence in the upcoming two-year period, suggesting that the ascent in digital asset prices will parallel the significant surges witnessed in 2021.
Insights from Experts on Market Trajectory
“We anticipate similar price surges for digital assets over the next two years (in percentage terms) as seen in 2021,” commented Standard Chartered. The bank foresees established cryptocurrencies appreciating in value while new subsectors emerge with real-world applications gaining traction. Notably, the bank has revised its previous forecasts, predicting Bitcoin to reach $200,000 and Ethereum to surpass $10,000 by the end of 2024, marking a significant increase from their current values of around $76,500 and $2,950, respectively.
This optimism has been further stoked by the recent electoral win of Donald Trump, positioning him for a return to the White House with supportive Republican majorities in both the Senate and House. Trump’s campaign included several crypto-friendly proposals, a factor that Standard Chartered believes will usher in swift legislative changes capable of invigorating the cryptocurrency market.
Context of the Market and Expected Legislative Revisions
The bank foresees a series of regulatory adjustments under Trump’s administration that could trigger notable price shifts across various cryptocurrencies. These changes may include the repeal of SAB 121, aimed at dissuading banks from holding cryptocurrencies, the introduction of stablecoin regulations, and a potential relaxation of the U.S. Securities and Exchange Commission’s (SEC) rigid stance on digital assets. While the notion of a U.S. government Bitcoin reserve has garnered enthusiasm from some Republicans and industry figures, Standard Chartered rates the likelihood of this scenario as low.
“The new U.S. administration is expected to introduce regulatory changes necessary for propelling the next phase of growth in digital assets,” remarked the bank, reflecting broader confidence in political backing for the cryptocurrency industry.
Analysis of Anticipated Market Impact
Aside from the projected price surge, Standard Chartered forecasts a substantive shift in the digital asset market composition. The bank predicts a decrease in Bitcoin’s dominance within the market from approximately 60% to about 40% by the end of 2026. This shift is expected to be driven by altcoins, with specific emphasis on those displaying tangible real-world applications, such as Solana, projected to outperform Bitcoin and Ethereum.
Standard Chartered’s analysis underscores a number of emerging use cases that could bolster the growth of altcoins, including advancements in the gaming industry, decentralized physical infrastructure (DePIN), and on-chain consumer social products.
Final Thoughts: Noteworthy Insights for Investors
In essence, the bullish projections by Standard Chartered for the cryptocurrency market underscore a belief in substantial expansion fueled by political support and the evolution of digital assets. With expectations of regulatory changes creating a more favorable environment for cryptocurrencies, alongside emerging use cases, the potential for significant market growth appears promising. Investors are advised to closely track these developments as they unfold in the following months and years, positioning themselves to seize the opportunities within this dynamic landscape.
