Bitcoin on the rise: Can the price reach $500,000 by 2029?

Bitcoin on the rise: Can the price reach $500,000 by 2029?

Standard Chartered Bank has highlighted Bitcoin's potential in a recent analysis and predicts the cryptocurrency's value will rise to as much as $500,000 by 2029. Geoffrey Kendrick, global head of digital wealth research at Standard Chartered, points to the increasing indirect involvement of governments, particularly through companies like MicroStrategy (MSTR), as a crucial factor. According to the report, this increase could be fueled by increasing investor access and decreasing volatility, which could lead to a migration of portfolios into Bitcoin.

The analysis highlights that 13F data from the US Securities and Exchange Commission (SEC) shows a decline in direct purchases of Bitcoin ETFs. Interestingly, the Wisconsin sovereign wealth fund has liquidated its entire position of 3,400 BTC equivalent in IBIT. Report in this context it-boltwise, that governments have simultaneously increased their purchases of MSTR shares, a key holding in the Bitcoin market. Mubadala from Abu Dhabi, for example, has increased its exposure to 5,000 BTC equivalents.

Institutional purchases and their effects

Institutional demand for Bitcoin is also evident in the activities of other sovereign wealth funds. France and Saudi Arabia took MSTR positions for the first time in the first quarter of 2025. Additionally, Norway's sovereign wealth fund, the Swiss National Bank, and South Korean public funds each increased their exposure by 700 BTC, while US pension funds in California and New York added 1,000 BTC equivalents via MSTR. Kendrick describes this trend as encouraging and sees the 13F data as a test of the thesis that Bitcoin will attract new institutional buyers.

Michael Saylor, co-founder and executive chairman of Strategy, formerly MicroStrategy, recently continued his company's aggressive Bitcoin strategy. Between February 18 and February 23, 2025, the company acquired an additional 20,356 Bitcoins for approximately $1.99 billion, bringing its total holdings to an impressive 499,096 BTC. This equates to over $47 billion, with the average cost price being $66,357 per Bitcoin. This means that Strategy owns more than 2.3 percent of all Bitcoins ever mined.

Strategic investments and convertible bonds

The latest Bitcoin purchase follows Strategy's issuance of $2 billion in zero percent convertible bonds, giving first-time buyers the opportunity to purchase up to $300 million in additional bonds. Michael Saylor described the latest acquisition as the fifth-largest acquisition in the company's history, underscoring Strategy's aggressive stance in the Bitcoin market. These investments could not only fuel Strategy's growth, but also send the entire Bitcoin market into turmoil.

In summary, Standard Chartered's analysis shows that Bitcoin is increasingly seen as a macroeconomic hedge in institutional portfolios. The combination of institutional buying and the strategic direction of companies like Strategy could lead to a significant increase in Bitcoin prices. These developments shed new light on Bitcoin’s role in the global financial system.