Standard Chartered announced on Monday that top cryptocurrency Bitcoin could reach a value of $100,000 by the end of 2024, suggesting the “crypto winter” is over. Geoff Kendrick, Standard Chartered’s head of digital assets research, mentioned factors like recent banking sector turmoil, risk asset stabilization as the U.S. Federal Reserve ends its interest rate-hiking cycle, and increased crypto mining profitability could contribute to Bitcoin’s growth in a research note.
Kendrick wrote, “While sources of uncertainty remain, we think the pathway to the USD 100,000 level is becoming clearer.”
Bitcoin’s Partial Recovery
Bitcoin has seen an upward trend this year, surpassing $30,000 in April for the first time in ten months. The gains mark a partial recovery following trillions of dollars lost in the crypto sector in 2022 due to central banks increasing rates and the collapse of numerous crypto companies.
Historically, ambitious valuations have been a staple of Bitcoin’s past rallies. In November 2020, a Citi analyst predicted Bitcoin could reach $318,000 by the end of 2022; however, the cryptocurrency ended the year down about 65% at $16,500.
Also Read: Coinbase Expands Services in Singapore with Standard Chartered Partnership
Factors Boosting Bitcoin
In the recent note, Standard Chartered credited Bitcoin’s success to its “branded safe haven” status, its perception as a relative store of value, and its role as a means of remittance. Kendrick also pointed out that the European Parliament’s support for the European Union’s first set of crypto asset market regulations should provide a “tailwind” for Bitcoin.
On April 5, JPMorgan suggested that a technical change in the Bitcoin blockchain, known as its “halving” in April 2024, could increase Bitcoin’s price by making it more expensive to produce, creating a “positive psychological effect.” JPMorgan also noted that the recent U.S. banking crisis has been seen as a “vindication of the crypto ecosystem” by crypto enthusiasts, who argue that stablecoins are less prone to runs.
U.S. regulators have previously warned banks of potential liquidity risks from crypto-related deposits, such as stablecoin reserves, which could experience rapid outflows.
