Bitcoin May Reach $100,000 By End Of 2024: Standard Chartered
A Citi analyst predicted in November 2020 that Bitcoin could climb as high as $318,000 by the end of 2022. Last year, however, it closed down about 65 per cent at $16,500.
On Monday, Standard Chartered suggested that Bitcoin may hit $100,000 by the end of 2024 as it emerges from what was commonly referred to as the "crypto winter." According to Geoff Kendrick, the bank's head of digital assets research, several factors could contribute to the increase in Bitcoin's price, including the recent banking sector turmoil, the stabilization of risk assets due to the conclusion of the US Federal Reserve's interest rate hike cycle, and the increased profitability of crypto mining.
Although some uncertainties persist, Kendrick believes that the path to the $100,000 mark is becoming clearer. After trillions of dollars were lost in the crypto sector in 2022, Bitcoin has rebounded this year, breaking $30,000 in April for the first time in ten months.
In the past, there have been numerous predictions of sky-high valuations during Bitcoin's rallies. A Citi analyst predicted in November 2020 that Bitcoin could climb as high as $318,000 by the end of 2022. Last year, however, it closed down about 65 per cent at $16,500.
ALSO READ: Why Bitcoin Is Seeing A Surge In 2023. What Investors Should Keep In Mind
In a note on Monday, Standard Chartered stated that Bitcoin's perceived relative store of value, status as a branded safe haven, and means of remittance have all contributed to its success. Furthermore, Kendrick believes that the European Parliament's recent endorsement of the EU's first set of rules to regulate crypto asset markets will provide a tailwind for Bitcoin.
On April 5, JPMorgan published a note stating that a technical change to the Bitcoin blockchain, known as its "halving," in April 2024 could increase its price by making it more expensive to produce, resulting in a "positive psychological effect." According to JPMorgan, cryptocurrency prices have already benefited from crypto enthusiasts interpreting the recent US banking crisis as a "vindication of the crypto ecosystem." Stablecoins are thought to be "less susceptible to runs," according to crypto supporters, according to JPMorgan.
EXPLAINED: Crypto Winter: What Is It? How Is It Connected To 'Game Of Thrones'? Does It Have Any Advantages?
US regulators have previously cautioned banks to be vigilant for liquidity risks arising from crypto-related deposits, such as stablecoin reserves, which may be subject to rapid outflows.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.
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