Bitcoin Predicted to Reach $100,000 by 2024 as "Crypto Winter" Ends, Says Standard Chartered
London, April 24 - According to Standard Chartered, a leading bank, the price of the popular cryptocurrency bitcoin could surge to $100,000 by the end of 2024, marking the end of the so-called "crypto winter."
Geoff Kendrick, the head of digital assets research at Standard Chartered, outlined several factors that could contribute to bitcoin's potential rise. These include recent upheavals in the banking sector, a stabilization of risk assets as the U.S. Federal Reserve concludes its cycle of interest rate hikes, and the improved profitability of cryptocurrency mining.
The banking industry has experienced significant turbulence, and this instability could drive investors towards alternative assets like bitcoin. Additionally, as the Federal Reserve adopts a more accommodative monetary policy, risk assets, including cryptocurrencies, may benefit from increased investor confidence.
Furthermore, the profitability of crypto mining has improved, potentially driving more participants to engage in mining activities. This could lead to a higher demand for bitcoin, ultimately pushing its price higher.
Standard Chartered's optimistic outlook for bitcoin reflects the evolving dynamics of the cryptocurrency market. After a prolonged period of market correction, often referred to as the "crypto winter," the bank believes that bitcoin is poised for a significant rebound.
It is important to note that cryptocurrency markets are known for their volatility, and prices can be influenced by various factors. While Standard Chartered's prediction provides a positive outlook for bitcoin, it is always advisable for investors to exercise caution and conduct thorough research before making any financial decisions.
As the cryptocurrency market continues to evolve, analysts and investors will closely monitor bitcoin's performance, keeping an eye on factors such as regulatory developments, technological advancements, and market trends.
"Bitcoin's Path to $100,000 Becoming Clearer, Analysts Predict"
According to a recent analysis, the pathway to Bitcoin reaching the $100,000 level is becoming more apparent. The cryptocurrency has experienced a significant rally this year, with its value surpassing $30,000 in April for the first time in ten months. This upward trend marks a partial recovery for Bitcoin, following the massive losses suffered in the crypto sector during 2022, when trillions of dollars were wiped out due to central banks raising interest rates and the collapse of several crypto firms.
It's not uncommon for lofty predictions to be made during Bitcoin's past rallies. In November 2020, a Citi analyst projected that Bitcoin could potentially reach as high as $318,000 by the end of 2022. However, the cryptocurrency closed the year with a decline of approximately 65%, settling at $16,500.
While uncertainties still exist in the crypto market, experts believe that the path to Bitcoin reaching the $100,000 mark is becoming clearer. This positive outlook reflects the resilience and potential of Bitcoin as it continues to gain momentum in the face of past setbacks.
Bitcoin Gains Momentum as a Branded Safe Haven and European Regulation Provides a Boost
According to a note from Standard Chartered, bitcoin's recent success can be attributed to its reputation as a "branded safe haven," a perceived store of value, and a convenient means of remittance. This has contributed to its growing popularity among investors.
Furthermore, the European Parliament's endorsement of the European Union's inaugural regulations to oversee crypto asset markets is expected to generate positive momentum for bitcoin. This regulatory framework, once implemented, could offer greater legitimacy and stability to the cryptocurrency market, making it more appealing to investors.
JPMorgan also highlighted the potential impact of a technical change to the bitcoin blockchain scheduled for April 2024, known as its "halving." This event, which reduces the reward for bitcoin miners and slows down the production of new bitcoins, could lead to increased scarcity and higher production costs. As a result, it may generate a positive psychological effect among investors, potentially driving up the price of bitcoin.
Overall, these factors indicate a promising outlook for bitcoin in the near future. Its reputation as a safe haven asset, combined with supportive regulatory developments and anticipated technical changes, positions bitcoin as an attractive investment option for individuals and institutions alike.