Bitcoin’s Path to $200K: Standard Chartered Sees Opportunity in Market Downturn
After a sharp $19 billion crypto-market crash, analysts at Standard Chartered believe the sell-off could set the stage for a major rebound. Rather than viewing the recent liquidation wave as a sign of weakness, the bank’s global head of digital assets research, Geoff Kendrick, described it as a natural “cleansing moment” — one that could pave the way for Bitcoin’s next powerful surge.
According to Kendrick, the sell-off wiped out excessive leverage that had been building up in the market, creating a healthier environment for long-term investors. Once short-term panic subsides, he expects a renewed accumulation phase to begin — a pattern that has historically followed large liquidation events in the crypto space.
Standard Chartered maintains a bold forecast that Bitcoin could climb toward the $200,000 mark by the end of 2025. Even in a more cautious scenario, the firm expects Bitcoin’s value to remain well above $150,000, suggesting confidence in the asset’s long-term growth potential. Kendrick emphasized that the recent volatility doesn’t alter the bank’s broader bullish outlook — if anything, it may accelerate renewed buying interest as investors seek to capitalize on discounted prices.
The report points to several structural supports fueling Bitcoin’s next rally. Chief among them are the steady inflows into Bitcoin exchange-traded funds (ETFs), which continue to attract institutional and retail investors alike. These ETFs, launched earlier in the year, have introduced a wave of new liquidity and legitimacy into the crypto market. Kendrick argued that the flow of capital through regulated products provides a foundation for sustained demand, even amid short-term turbulence.
He also drew attention to the growing parallel between Bitcoin and gold. As traditional markets show renewed appetite for safe-haven assets, Bitcoin’s narrative as “digital gold” could once again take center stage. With global uncertainty and inflationary pressure lingering, many investors are beginning to treat Bitcoin not as a speculative token but as a hedge against currency devaluation and financial instability.
Adding to that optimism is the shifting macroeconomic landscape. The possibility of interest-rate cuts by major central banks, particularly the U.S. Federal Reserve, could make risk assets more attractive. If borrowing costs decrease and liquidity returns to global markets, assets like Bitcoin may experience renewed inflows. Standard Chartered’s analysis suggests that even moderate policy easing could serve as a powerful tailwind for crypto growth.
Despite the optimism, Kendrick acknowledged that the aftermath of such a large crash takes time to stabilize. It could be several weeks before the market fully recovers from the shock and finds a new equilibrium. However, he maintained that Bitcoin’s underlying fundamentals remain strong and that the recent correction offers disciplined investors a strategic entry point rather than a reason to retreat.
BTC/USD, 1-month chart. Source: Cointelegraph
Short-Term Fear, Long-Term Confidence
While the short-term mood across the crypto landscape remains cautious, Standard Chartered believes the underlying momentum has not been derailed. The recent market correction, which forced billions in leveraged positions to unwind, has reset many of the excesses that had accumulated during the rally. According to the report, these temporary crashes often mark a turning point where weak hands exit, and long-term holders quietly begin accumulating again.
Market data shows that after large-scale liquidations, Bitcoin often enters a consolidation phase before resuming an upward trend. Standard Chartered’s analysts interpret this as a normal part of the market cycle — a brief pause that strengthens the foundation for the next phase of growth. The current cooling period, they argue, could actually be the healthiest thing for Bitcoin’s trajectory toward new highs.
Kendrick also noted that investor psychology plays a crucial role in these moments. Historically, fear and uncertainty create the very conditions that precede massive rallies. “When the majority expects further downside, that’s when the real opportunities often appear,” he suggested. This contrarian insight aligns with the bank’s projection that Bitcoin could still climb toward the $200,000 level once sentiment flips back to optimism.
Institutional Confidence and Market Evolution
Another pillar of Standard Chartered’s outlook is the growing participation of institutional investors. In previous market cycles, retail traders largely drove price movements, but the rise of ETFs and crypto custodial services has brought a more mature, professional investor base. Large funds and family offices are now building strategic exposure to Bitcoin, often with longer time horizons and risk-managed approaches.
This shift toward institutional participation has helped reduce the extreme volatility that once defined crypto markets. It also reinforces the idea that Bitcoin is maturing into a recognized global asset rather than a speculative experiment. Kendrick emphasized that institutional involvement doesn’t just provide stability — it fundamentally changes how capital flows in and out of the market. “Bitcoin’s growth story is becoming more structured and less dependent on hype,” he said.
Bitcoin ETF inflows, USD, million. Source: Farside Investors
The Road Ahead
Despite lingering uncertainties — from global politics to potential regulatory changes — Standard Chartered remains optimistic that the structural foundations supporting Bitcoin’s rise are intact. As the market absorbs recent shocks, the analysts expect a renewed wave of confidence to emerge, driven by ETF inflows, institutional adoption, and macroeconomic shifts favoring alternative assets.
In their long-term projection, Bitcoin’s path toward $200,000 is viewed not as a speculative fantasy but as an achievable milestone, provided that adoption continues at its current pace. The report concludes that the current price turbulence could one day be seen as a pivotal chapter in Bitcoin’s evolution — a reminder that in every crash lies the seed of the next bull run.
Source: Cointelegraph Edited by Sonarx