Standard Chartered’s digital assets research team has sharply cut its medium-term price forecasts for major cryptocurrencies, including XRP, Bitcoin, and Ethereum, signaling a notable shift in its outlook for the sector. The most eye-catching downgrade concerns XRP, where the bank now sees limited upside compared to previous predictions, raising questions about short-term volatility in crypto markets following the revised guidance.
XRP and Other Major Cryptocurrencies Face Downward Price Revisions
Renowned for its in-depth digital asset analysis, the UK-based global bank made headlines by lowering its 2026 year-end price target for XRP from eight dollars to just $2.80. Led by chief researcher Geoff Kendrick, the team described this adjustment as a significant revision of its earlier expectations—amounting to an approximate 65% reduction in the projected price. This bold update underscores a more cautious stance toward XRP’s growth prospects over the next two years.
Why the Revisions? Institutional Flows and Macroeconomic Pressures
The bank clarified that this downward revision doesn’t reflect a wholesale shift in long-term market dynamics. Instead, it factors in changes in inter-institutional fund flows and mounting global economic headwinds. The research particularly highlighted that earlier optimism sparked by expectations of imminent approval for Spot XRP ETFs has not been sustained, with anticipated institutional inflows into such funds failing to materialize as hoped.
Standard Chartered’s analysis suggests that the belief in a resilient cohort of investors holding firm has not been borne out, leading to a weakened “super cycle” thesis for the sector. The lack of strong new buying from institutions has played a significant role in prompting this more subdued outlook.
Meanwhile, the strengthening US dollar and the prospect of interest rates staying elevated for a prolonged period have put additional downward pressure on non-yielding digital assets, particularly alternative coins. These developments have collectively prompted the bank to reassess not just its forecast for XRP but also its projections across the broader cryptocurrency market.
Short-Term Volatility Looms for Crypto Markets
Amid this transition to lower price targets, Standard Chartered cautioned that crypto markets may face heightened short-term risks. Its analyst team pointed out that, for XRP, the $1.30–$1.40 range could emerge as an important technical support level in the coming weeks as the market digests these changes.
“Ripple’s payments network infrastructure remains important in the long run; however, institutional adoption through public ETFs has not progressed at the pace anticipated earlier this year,” the report noted.
This evaluation underlines that, while Ripple’s technological role is still recognized, the integration by institutions is developing more slowly than previously projected.
Bitcoin and Ethereum Targets Also Trimmed
Alongside the substantial reduction in its XRP target, Standard Chartered scaled back its forecasts for Bitcoin and Ethereum by similar magnitudes. The long-term projection for Bitcoin has been reduced from $250,000 to $180,000, while Ethereum’s target has shifted down from $14,000 to $9,500. The bank emphasized that these adjustments are not driven by negative expectations for a single asset but rather reflect a need for sector-wide adaptation in an evolving macroeconomic landscape.
The report explains that tighter liquidity conditions and uncertain economic prospects have prompted a more cautious approach overall. These substantial revisions underscore that forward-looking assessments for cryptocurrencies are now grounded in more sober, realistic expectations, setting a new tone for market sentiment and strategic planning.
