Standard Chartered forecasts the crypto market will reach $10 trillion by 2026, with Bitcoin at $200k and Ethereum over $10k, driven by regulatory shifts and altcoin growth - IcoHolder.

In an optimistic forecast for the digital assets sector, Standard Chartered has projected that the cryptocurrency market will reach a staggering $10 trillion by the end of 2026—four times its current value. According to the bank's report, Bitcoin is expected to hit $200,000 and Ethereum could surpass $10,000, reflecting a surge in value driven by evolving market dynamics and regulatory shifts.

A New Era for Digital Assets

Standard Chartered’s bullish outlook comes amid expectations that the next two years could mirror the price surges seen in 2021, with both Bitcoin and Ethereum poised for substantial gains. The bank attributes these predictions to a combination of growing real-world use cases for digital assets and anticipated regulatory changes that will provide greater clarity for the market.

“The next two years could mirror the price surges seen in 2021,” the report states, emphasizing that as digital assets gain broader adoption, new sectors and applications are expected to emerge. As these use cases become mainstream, Standard Chartered predicts that the market will attract more institutional investors, further accelerating growth.

Trump’s Potential Return and Crypto-Friendly Reforms

A key factor in the bank’s forecast is the potential return of Donald Trump to the U.S. presidency. Standard Chartered believes that Trump’s promises to lift regulatory burdens on the crypto sector could lead to significant legislative changes that would support the growth of digital assets.

Among the reforms the bank anticipates are:

Repealing SAB 121, which would allow banks to safely custody crypto assets

Stablecoin legislation to foster broader adoption

Halting the SEC’s crypto crackdown, providing much-needed regulatory clarity

Consideration of a U.S. Bitcoin reserve, although this is seen as unlikely

These potential policy shifts could inject considerable momentum into the cryptocurrency market, enabling the sector to expand rapidly. The bank stresses that regulatory clarity is crucial for attracting institutional investments, which in turn will drive the adoption of digital assets.

Altcoins and the Rise of Real-World Use Cases

While Bitcoin remains a dominant force in the crypto space, Standard Chartered foresees a shift in market dynamics, with altcoins gaining more traction. The bank predicts that Bitcoin's market dominance will decrease from its current 60% to 40% by 2026, as altcoins with real-world utility begin to capture a larger share of the market.

Key sectors driving altcoin growth include:

Gaming: Blockchain-based games are creating new revenue streams and innovative user experiences.

Decentralized Infrastructure (DePIN): Networks supporting decentralized physical infrastructure are emerging as a key use case.

Social Media on the Blockchain: On-chain social platforms are offering user-driven experiences that are gaining popularity.

Among altcoins, Solana is highlighted as a top contender, with the bank predicting it will outperform both Bitcoin and Ethereum due to its versatility in supporting applications across these growing sectors.

“Tokens with real-world utility are poised to capture more market share as adoption broadens,” Standard Chartered stated, underscoring the shift toward altcoins that cater to specific, practical needs within the digital economy.

Key Takeaways

Bitcoin’s Price Surge: Bitcoin is projected to reach $200,000 by 2026, reflecting growing market confidence.

Regulatory Shifts: The potential return of Trump’s administration could lead to significant crypto-friendly reforms, fueling growth.

Altcoin Growth: As real-world applications expand, altcoins like Solana are expected to outperform Bitcoin, with sectors like gaming and decentralized infrastructure driving adoption.

Standard Chartered’s forecast paints an optimistic picture for the future of digital assets. With regulatory clarity, growing institutional adoption, and expanding real-world use cases, the cryptocurrency market is poised to undergo a transformative phase. Investors and businesses alike have much to look forward to as the sector continues to evolve.