Bitcoin Could Rise 270% To $100,000, Standard Chartered Says
Standard Chartered said in a filing released on Monday that Bitcoin’s price could rise to as high as $100,000 by the end of 2024, signaling the end of “crypto winter.”
According to Geoff Kendrick, head of digital asset research at Standard Chartered, Bitcoin could benefit from the recent turmoil in the banking sector, a stabilization of risk assets as the US Federal Reserve ends its cycle of raising interest rates. interest and improves the profitability of crypto mining.
While the cryptocurrency’s original purpose of serving as a hedge against skyrocketing inflation last year was unsuccessful, it has recently achieved success by serving as a gamble against traditional banking.
Bitcoin’s resilience and strong value
The cryptocurrency’s decentralized resources have made it a resilient asset in the face of widespread bank failures. In fact, alpha currency was the best performing asset in Q1, having gained 70% over the period.
“We see potential for Bitcoin to reach the $100,000 level by the end of 2024,” Kendrick said in the report, titled “Bitcoin – Path to the $100,000 Level.”
Standard Chartered’s head of digital asset research also said that he thinks “the much-vaunted ‘crypto winter’ is finally over” and that the path to $100,000 territory is becoming “clearer”.
In April, Bitcoin crossed $30,000 for the first time in 10 months, continuing its upward trend this year. After trillions of dollars were drained from the crypto sector in 2022 due to rising central bank rates and the collapse of a slew of crypto companies, the biggest cryptocurrency’s advances spell a partial recovery.
Important role of cryptocurrency miners
The increased profitability of cryptocurrency miners may be among the factors supporting the price of BTC, as miners are more likely to hold their coins rather than sell them if values remain substantially above mining costs.
The most sought-after digital currency dropped below $30,000, but Kendrick predicted that miners would hoard their coins if prices remained above $15,000.
The halving in 2024, which will cut the amount of new coins in half, was also identified as a bullish factor by Standard Chartered.
In light of this, Kendrick said Bitcoin has profited from its reputation as a branded safe haven, a perceived relative store of value and a viable method of transfer.
BTC total market cap at $560 billion on the daily chart at TradingView.com
Nowhere but above
Bitcoin bulls argue that the cryptocurrency represents a prudent diversification strategy during economic downturns. Since there will never be more than 21 million Bitcoins in circulation, their value will increase in tandem with the demand for inflation hedge assets.
During previous Bitcoin rallies, predictions of absurdly high prices prevailed. In November 2020, a Citi analyst predicted that Bitcoin’s value could reach $318,000 by the end of 2022. Last year, it dropped by about 65% to close around $16,500.
At the time of writing, Bitcoin is trading at $28,865, up 2% over the last 24 hours, shows data from crypto market tracker Coingecko.
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