The price of Bitcoin is set to reach $500.000, driven by a growing wave of institutional adoption and support from governments around the world.
The cryptocurrency market is experiencing a historic moment. Bitcoin, the pioneer cryptocurrency, has once again surpassed $107.000 per unit and is on the verge of a new all-time high (ATH), driven by factors beyond retail interest.
A recent report by Standard Chartered, prepared by Geoffrey Kendrick, highlights that growing institutional exposure and sovereign backing, especially through the purchase of Strategy shares, are marking a new era for the leading cryptocurrency.
BUY BITCOIN WITH COMPLETE PEACE OF MIND HERETo date, governments and sovereign wealth funds Norway, South Korea and Saudi Arabia, among others, have increased their positions in MSTR, using these shares as a indirect vehicle to gain exposure to BitcoinThis phenomenon, added to the political context following Donald Trump's victory in the presidential elections last November, reinforces Standard Chartered's projection: Bitcoin could reach $500.000 before 2029.
Below, we analyze the drivers of this trend and its impact on the global financial ecosystem.
The rise of institutional Bitcoin adoption: beyond spot ETFs
The entry of institutional investors into the Bitcoin market has been one of the key factors behind its appreciation. However, the Standard Chartered report emphasizes that the real driver of current growth is not so much Bitcoin exchange-traded funds (ETFs), but the accumulation of shares in Strategy (MSTR), the company that owns more than 576.200 bitcoins on their balance sheet. This strategy allows institutions and governments to access Bitcoin's volatility and potential without having to deal directly with custody or the regulation associated with the cryptocurrency.
Recent statements by Geoffrey Kendrick, global head of digital asset research at Standard Chartered, reinforce this view: “As more investors gain access to the asset and volatility decreases, we believe portfolios will migrate toward their optimal level from an initial underweight position in Bitcoin.”
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Data from the first quarter of 2025 show that The acquisition of MSTR shares by institutional and sovereign entities accelerated. Thus, the correlation between Bitcoin's price and MSTR's value has strengthened, consolidating the latter as a "proxy" for the cryptocurrency in institutional portfolios.
Sovereign backing: Governments and state funds trust Bitcoin
Kendrick emphasized that the most novel and significant phenomenon in the current Bitcoin market is the entry of sovereign entities, albeit indirectly.
According to the report, funds from Norway, South Korea, Saudi Arabia, Switzerland, and France have increased their exposure to Bitcoin by purchasing Strategy shares. For example, the Norwegian government pension fund, the Swiss central bank, and South Korean public funds each added the equivalent of 700 bitcoins in the first quarter of 2025. Saudi Arabia, meanwhile, opened a position in MSTR for the first time, while US state funds such as those in California and New York collectively added the equivalent of 1.000 bitcoins.
Maximize your cryptocurrency opportunities – Link to EarnThis trend is partly due to regulatory restrictions that prevent some governments from owning Bitcoin directly. However, purchasing shares in companies with large Bitcoin reserves allows these players to benefit from the digital asset's upside potential, diversifying their reserves and adapting to the evolution of the global financial system. As Kendrick points out, this wave of sovereign backing provides legitimacy and stability to the market, reducing the perception of risk and attracting new institutional participants.
The Trump effect and the macroeconomic context
Bitcoin's recent rally also coincides with significant political and macroeconomic factors. Analysts highlight that the expectation of innovation-friendly economic policies and clear financial regulation under the Donald Trump administration could catalyze a new wave of digital asset adoption. Added to this are global macroeconomic factors, such as the agreement with China on tariff policy and the downgrade of the United States' credit rating by Moody's, which have increased demand for alternative and safe-haven assets.
The result of all this is an environment conducive to Bitcoin consolidating its position as a store of value, attracting both institutional investors and governments seeking protection against the volatility of traditional markets.
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Outlook for the current rally: Is Bitcoin headed to $500.000?
Standard Chartered's projection that Bitcoin could reach $500.000 by 2029 no longer seems so far away. Institutional and sovereign support, coupled with market maturation and reduced volatility, lay the groundwork for sustained growth.
Kendrick himself acknowledged earlier this month that his previous forecast of $120.000 per BTC for Q2025 XNUMX was “too low,” noting that flows into products like MSTR and US ETFs have exceeded all expectations, with billions of dollars in inflows in recent weeks.
BUY AND SELL BTC IN ONE CLICKThe growth of the buyer base and the diversification of the players involved, from pension funds to central banks, reinforce the theory that Bitcoin is moving from being a speculative asset to becoming a strategic component of global portfolios. If this trend continues, the $500.000 target could materialize sooner than expected, redefining Bitcoin's role in the international financial system.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
