Geoffrey Kendrick, who heads global digital asset research at Standard Chartered Bank, stands out as one of the most positive cryptocurrency analysts in the financial sector. Despite cryptocurrencies facing headwinds throughout 2025, driven by economic instability and geopolitical factors like tariffs, Kendrick anticipates significant price gains for both Bitcoin (BTC) and XRP over the next two years.
According to Kendrick's projections, Bitcoin's value will increase from roughly $88,000 to about $225,000 by 2027, reflecting an upside potential of approximately 155%. XRP, currently trading near $1.87, is expected to surge to $10.40, which implies a substantial 455% growth.
Regulatory Environment Favoring Cryptocurrency Development
Kendrick identifies the evolving regulatory landscape as a major catalyst that could boost the adoption and valuation of digital assets. Earlier this year, the administration undertook multiple actions to foster leadership in digital finance technology. This included forming a specialized working group aimed at bolstering American influence in the field, along with an executive order that established strategic reserves of Bitcoin and other digital assets.
Further legislative support came in the form of the Genius Act, which introduced a federal framework regulating stablecoins. Alongside this, the appointment of Paul Atkins, recognized as a pro-cryptocurrency figure, as chairman of the Securities and Exchange Commission (SEC), notably signals increased institutional support. Additionally, the Clarity Act, passed by the House of Representatives, aims to clarify jurisdictional authority among federal agencies over different digital asset categories.
The SEC has also formed its own specialized crypto task force and repealed certain prior requirements, such as Staff Accounting Bulletin (SAB) 121. This previous regulation compelled financial institutions to treat cryptos held in custody as assets and liabilities on their balance sheets, increasing reserve requirements and potentially deterring institutional involvement. The removal of SAB 121 is expected by Kendrick to facilitate greater institutional adoption.
The Outlook for Bitcoin Demand and Investment
Bitcoin's market demand has been notably influenced by companies maintaining significant Bitcoin holdings on their balance sheets, often referred to as Bitcoin treasury companies. Strategy, previously known as MicroStrategy, is the most prominent example with a Bitcoin reserve exceeding 671,000 BTC. However, Kendrick predicts these treasury companies may diminish as a demand driver in the near term and could even act as a headwind. For instance, Strategy's CEO has indicated that the company might sell Bitcoin if its market-to-net-asset value ratio (mNAV) dips below 1; currently, Strategy’s mNAV stands at 1.07, a decline from 1.7 six months prior.
Looking ahead, Kendrick emphasizes the growing importance of spot Bitcoin exchange-traded funds (ETFs) as the primary demand source. Spot Bitcoin ETFs directly track Bitcoin's price and simplify the investment process by removing the complexities and fees associated with cryptocurrency exchanges. By integrating Bitcoin investment into traditional brokerage platforms, these ETFs have paved the way for substantial institutional participation. Considering institutions oversee nearly $150 trillion in assets, their engagement is critical to driving Bitcoin’s long-term appreciation.
Institutional strategists have highlighted Bitcoin's appeal for portfolio diversification, growth prospects, and the improved clarity of regulation. Presently, Bitcoin trades about 30% below its previous peak, and such significant price corrections have historically offered attractive entry points for investors with patience and tolerance for market volatility. Financial advisory guidelines suggest limiting cryptocurrency exposure to approximately 4% of the portfolio for aggressive investors and 2% for those with moderate risk appetites.
Assessing XRP's Prospects and Challenges
XRP is the native token of the XRP Ledger, recognized for facilitating quicker and more cost-efficient cross-border transactions compared to traditional systems like SWIFT, the prevailing standard for international wire transfers. The blockchain-based fintech firm Ripple utilizes XRP to support financial institutions in processing global payments. Ripple’s CEO envisions XRP capturing as much as 14% of SWIFT's transaction volume within five years, which would represent over $20 trillion in annual transactions.
Despite this optimistic vision, current adoption levels suggest few financial entities extensively use XRP as a bridge currency for cross-border transfers, primarily due to the volatility intrinsic to cryptocurrencies when stablecoins offer a more stable alternative. To address volatility concerns, Ripple introduced Ripple USD, a stablecoin, which nonetheless encounters stiff competition from existing options such as USDT and USDC.
Ripple USD’s usage entails transaction fees paid in XRP, which could theoretically boost XRP demand. However, since its launch in December 2024, XRP’s transaction volume has declined, indicating limited uptake for both Ripple USD and XRP in broader market usage.
From an investment standpoint, Kendrick acknowledges that while XRP’s price might be influenced by recent regulatory approvals, particularly the launch of spot XRP ETFs, market demand remains modest in comparison to Bitcoin. Since the initial approval of spot XRP ETFs in November, assets under management (AUM) surpass $1 billion—a promising but significantly smaller scale compared to the $33 billion AUM gathered by spot Bitcoin ETFs within their first month.
In conclusion, while Kendrick projects impressive gains for both assets, Bitcoin currently presents a more compelling investment proposition relative to XRP. Additionally, alternatives such as Circle Internet Group, the issuer behind USDC, might offer comparatively stronger opportunities than XRP itself. He sees Bitcoin’s forecasted 155% price increase by 2027 as plausible, but regards XRP’s projected appreciation as overly optimistic given current trends.