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.

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.

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