- Standard Chartered predicts Bitcoin price to reach $100,000 by end of 2024.
- U.S. banking crisis strengthens the case for Bitcoin as a decentralized, trustless, and scarce digital asset.
Standard Chartered Foresees $100,000 Bitcoin Amid U.S. Banking Crisis
Standard Chartered analysts have made a bold Bitcoin price prediction for the next bull cycle, anticipating that the cryptocurrency will climb to $100,000 by the end of 2024. This forecast comes amid a growing banking crisis in the United States, with the collapse of several banks, including Silicon Valley Bank, Silvergate, and Signature. Analyst Geoff Kendrick believes these events have solidified Bitcoin’s position as a “decentralized, trustless, and scarce digital asset.”
From Crypto Winter to Bitcoin’s Six-Figure Breakout
According to Kendrick, the bear market has come to an end and prices will continue to rise in the next bull market cycle. He asserts that the current stress in the traditional banking sector is highly conducive to Bitcoin’s outperformance. Kendrick also predicts that Bitcoin’s market dominance will return to the 50-60% level; at present, it stands at 47.37%.
Stablecoin woes and shrinking supplies have further benefited Bitcoin, with an outflow of stablecoins into the cryptocurrency observed this month as it reached a ten-month high of approximately $31,000. Speculation that the Federal Reserve will ease monetary tightening bolsters the “pathway to the USD 100,000 level,” Kendrick added.
Rising Bitcoin Prices Benefit Mining Firms
The analyst’s report highlights the advantages for Bitcoin mining firms, which have experienced a surge in stock prices this year. The jump in Bitcoin’s price, from below $20,000 before the Silicon Valley Bank issues to above $30,000, has dramatically increased the profitability of Bitcoin mining companies. Kendrick concludes that the broader backdrop for risky assets like Bitcoin is improving, with correlations to the Nasdaq suggesting better trading if risky assets improve broadly.
In a significant U-turn on crypto, Standard Chartered’s December 2022 prediction of Bitcoin prices falling to $5,000 in the wake of the FTX collapse contrasts sharply with their current optimistic outlook. At the time of writing, Bitcoin prices are trading down 1.4% on the day at $27,399, with total capitalization slipping 1.3% to $1.2 trillion.