Can Bitcoin Reach $225,000 and XRP Hit $10.40? Wall Street Strategist's 2027 Outlook Explained

Setting the Stage: A Crypto Bull’s Perspective

Geoffrey Kendrick, the head of digital asset research at Standard Chartered Bank, stands among the most constructive voices in cryptocurrency analysis today. While 2025 has tested investors’ patience with market volatility stemming from economic headwinds and geopolitical tensions, Kendrick’s conviction on Bitcoin and XRP paints a strikingly different picture for the next two years. His research suggests both assets could deliver substantial gains, contingent on broader market adoption and favorable policy conditions.

The Regulatory Tailwind: Why Washington Matters

The shift in Washington’s approach to digital assets represents a fundamental change in the investment landscape. The Trump administration has engineered a series of pro-crypto moves that collectively reshape the sector’s trajectory.

President Trump established a dedicated working group to cement American dominance in digital financial infrastructure. More significantly, he signed an executive order establishing a strategic Bitcoin reserve—a policy typically reserved for sovereign wealth holdings. The administration also championed the Genius Act, creating the first comprehensive federal framework for stablecoin regulation.

Paul Atkins’ appointment as SEC chairman carries particular weight for the industry. His crypto-friendly stance contrasts sharply with his predecessors, signaling a regulatory pivot toward accommodation rather than constraint. The House-passed Clarity Act defines agency jurisdictions over different digital asset categories, eliminating ambiguity that previously hampered institutional participation.

Perhaps most consequential for institutional adoption: the SEC rescinded Staff Accounting Bulletin 121. That rule had forced financial institutions to treat custodied cryptocurrency as balance sheet liabilities, inflating reserve requirements and discouraging participation. Its removal eliminates a structural barrier to institutional capital flows.

Bitcoin’s Path to $225,000: Demand Drivers and Market Mechanics

Kendrick projects Bitcoin to trade at $225,000 by 2027, implying 155% upside from current levels around $88,000. This represents a measured rather than speculative forecast, grounded in identifiable demand catalysts.

The Institutional Inflection Point

Bitcoin treasury companies—firms like MicroStrategy (holding over 671,000 BTC)—initially drove adoption through corporate balance sheet positioning. However, Kendrick anticipates their influence will wane. MicroStrategy’s market-to-NAV ratio sits at 1.07, down from 1.7 midsummer, creating potential selling pressure if valuations compress further. This dynamic matters because it shifts attention to the next demand layer: institutional investors managing nearly $150 trillion in assets.

Spot Bitcoin ETFs represent the critical bridge connecting this capital pool to cryptocurrency. These investment vehicles eliminate the operational friction—exchange hassles, custodial fees, regulatory uncertainty—that previously deterred institutional deployment. Since approval, spot Bitcoin ETF assets have accumulated steadily, with State Street strategists noting that “institutions are embracing Bitcoin for its diversification characteristics, long-term growth prospects, and improving regulatory framework.”

Valuation Anchors and Risk Tolerance Parameters

Current market positioning presents another lens: Bitcoin trades 30% below its recent highs. Historically, such drawdowns have rewarded patient capital in early stages of institutional adoption cycles. Prominent firms like Morgan Stanley offer risk tolerance guidance—allocating 4% for aggressive investors, 2% for moderate risk tolerance—that provides a reasonable framework for portfolio construction. These tolerance thresholds reflect growing mainstream acceptance of cryptocurrency as a legitimate asset class allocation.

The XRP Argument: Promise vs. Reality

Kendrick’s XRP projection—$10.40 by 2027, implying 455% upside from $1.87—rests on a compelling but contested premise. XRP underpins the XRP Ledger, a blockchain engineered for faster, cheaper cross-border payment settlement compared to SWIFT’s incumbent dominance.

Ripple, the fintech company developing XRP applications, positions the asset as a bridge currency for financial institutions. CEO Brad Garlinghouse has articulated an ambitious vision: capturing 14% of SWIFT’s transaction volume within five years would translate to over $20 trillion in annual volume flowing through XRP infrastructure. That demand surge would theoretically support substantially higher valuations.

The Adoption Gap

Yet on-chain evidence presents a contrasting narrative. Few major financial institutions employ XRP for cross-border settlement—they have alternatives. Stablecoins address volatility concerns that made XRP adoption economically irrational. Ripple’s own stablecoin entry, Ripple USD, launched in December 2024 to compete against established competitors like USDT and USDC, but XRP transaction volumes have actually declined since that launch, signaling limited market traction.

The more defensible case for XRP centers on spot ETF approval effects. Institutional and retail demand surged following the November ETF approval, with assets exceeding $1 billion—a meaningful figure, though pale beside Bitcoin ETFs’ $33 billion first-month accumulation. This suggests institutional interest exists but at materially lower intensity than Bitcoin.

A More Conservative Assessment

While Kendrick may prove prescient on Bitcoin’s 155% appreciation trajectory, his XRP target appears overextended relative to adoption evidence. Alternative structures like Circle Internet Group’s USDC infrastructure arguably represent more defensible bets on cross-border payment disruption than XRP itself.

The Bottom Line: Bitcoin’s Clearer Path

Comparing risk-adjusted opportunity sets, Bitcoin’s Kendrick projection carries greater conviction than XRP’s forecast. The institutional infrastructure supporting Bitcoin adoption—spot ETFs, custody solutions, regulatory clarity—has materialized with tangible progress. XRP’s success depends on financial institutions fundamentally restructuring payment operations around a volatile cryptocurrency, a scenario lacking current market validation. For tolerance-based portfolio allocation frameworks, Bitcoin’s established use case as digital reserve currency presents a more direct path to Kendrick’s 2027 target.