Donald Trump’s latest move to formalize government involvement in cryptocurrency has sent shockwaves through the market. On March 2, the United States president announced that he had directed his crypto working group to move forward with establishing a U.S. strategic crypto reserve.
Per the update, the reserve would hold bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), marking a major shift in the government’s stance on digital assets. Following the announcement, Bitcoin’s price skyrocketed from around $85,000 to nearly $95,000 on Sunday, before stabilizing at $90,000 at the time of writing. Other cryptocurrencies also saw a sharp rise, with ADA surging 66% and XRP climbing over 30%.
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Standard Chartered predicts bitcoin to reach $500K
Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, believes this policy shift will have a lasting impact on bitcoin’s value. In a note to investors, he highlighted how BTC is becoming a permanent fixture in global investment portfolios, offering a hedge against traditional financial risks.
Aligning with VanEck’s projected timeline for BTC, ETH to reach bull market peaks, Kendrick now forecasts BTC will reach $200,000 by the end of 2025, $300,000 by 2026, $400,000 by 2027 and $500,000 by 2028.
“Given these developments, which align with our previous expectations, we continue to target Bitcoin to reach $200,000 by year-end 2025. Thereafter, we expect Bitcoin to reach $300,000 by the end of 2026, $400,000 by the end of 2027, and $500,000 by the end of 2028, where it will likely remain until the end of 2029,” he said, according to The Block.
“We have moved from selling rallies to buying dips,” Kendrick added, emphasizing that investors are shifting their strategies based on growing government and institutional involvement.
He also noted that U.S. states could follow suit by creating their own Bitcoin reserves, leading to total government-related holdings reaching an estimated 200,000 BTC.
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Market braces for White House crypto summit
Trump’s announcement comes just days before the White House Crypto Summit on March 7, an event expected to bring further policy updates. Investors are watching closely, anticipating regulatory shifts that could pave the way for broader institutional adoption.
Kendrick acknowledged bitcoin’s recent volatility, noting that February was the asset’s worst month since June 2022. However, the rally following Trump’s announcement resulted in BTC’s best weekend since January 2021. He likened this shift to a “Trump put”, similar to the “Fed put”, where markets believe government actions will provide a safety net for investors.
With crypto now a central topic in U.S. policy discussions, Kendrick believes the market will continue edging higher as uncertainty fades.As momentum builds around the U.S. strategic crypto reserve, Trump’s pro-crypto stance could shape the industry’s trajectory for years to come. While BTV’s path to $500,000 remains uncertain, institutional confidence in its long-term value appears stronger than ever.
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