Bitcoin Declines Amid US-China Trade Tensions, Standard Chartered Predicts $500K Target

Bitcoin Struggles Amid Escalating Trade Tensions

Bitcoin extended its decline on Wednesday, failing to maintain gains above the critical $100,000 level. The cryptocurrency dipped 1% to $98,536.0 as of 08:47 ET (13:47 GMT), reflecting heightened investor caution due to worsening U.S.-China trade relations.

The trade dispute intensified after the U.S. imposed a 10% tariff on Chinese imports, citing national security concerns. China retaliated with tariffs on U.S. goods, including energy products and farm equipment, and launched an antitrust probe into Google. These developments have fueled market volatility, with gold prices reaching record highs as investors seek safe-haven assets.

Regulatory Developments and Bitcoin's Outlook

The U.S. Securities and Exchange Commission (SEC) is reportedly downsizing its crypto enforcement unit, signaling potential regulatory easing under the Trump administration. While this could be bullish for Bitcoin, macroeconomic concerns, particularly the U.S.-China trade dispute, have overshadowed this development. The impact of the SEC's move on ongoing enforcement actions remains unclear.

Standard Chartered Predicts $500,000 Bitcoin Price Target

Standard Chartered has made a bullish prediction, forecasting Bitcoin to reach $500,000 before President Trump leaves office. The bank cites increased investor access, declining volatility, and supportive regulatory changes as key drivers. The launch of U.S. spot Bitcoin ETFs in January 2024 has already attracted $39 billion in inflows, signaling growing mainstream adoption.

The bank expects further growth, supported by the Trump administration's policies, including the repeal of SAB 121, which eased constraints on companies holding digital assets. Additionally, Trump's order to assess a potential national digital assets stockpile could encourage central banks to consider Bitcoin investments.

Altcoins Reflect Cautious Market Sentiment

Most altcoins tracked Bitcoin's decline, with Ether falling 0.8% to $2,808.80 and XRP dropping over 3% to $2.542. Solana and Dogecoin also weakened, while Polygon and Cardano saw modest gains. The subdued performance of altcoins highlights increased investor caution toward speculative assets amid broader market uncertainty.

Standard Chartered's optimistic outlook suggests Bitcoin could reach $200,000 by 2025, $300,000 by 2026, $400,000 by 2027, and $500,000 by 2028. The bank attributes this growth to improved market infrastructure, expanded options markets, and greater stability in price swings.