A major bank has made a significant U-turn on Bitcoin by predicting a $100,000 price for the digital currency. The bank had previously been critical of Bitcoin, but has now changed its tune and believes that it has a bright future ahead. This news is likely to attract a lot of attention from investors and traders who are interested in diversifying their portfolios with cryptocurrencies. It also represents a shift in sentiment towards Bitcoin, which is becoming increasingly mainstream and accepted as a legitimate asset class. If the bank’s prediction proves to be accurate, it could mean significant gains for investors who have already invested in Bitcoin, as well as those who are considering taking the plunge.
Standard Chartered Analyst Predicts Bitcoin to Reach $100,000 by 2024
In a report released on April 24th, Standard Chartered’s analyst Geoff Kendrick predicted that Bitcoin will reach $100,000 by the end of 2024. Kendrick believes that the collapse of several U.S. banks has solidified the case for Bitcoin as a “decentralized, trustless, and scarce digital asset.”
Kendrick also said that the current stress in the traditional banking sector is highly conducive to BTC’s outperformance. He predicted that Bitcoin market dominance would return to its 50-60% level from its current 47.37%. Moreover, he noted that stablecoin woes and shrinking supplies have also benefitted Bitcoin, which saw an outflow of stablecoins into BTC this month, as the asset reached a ten-month high of roughly $31,000.
The Federal Reserve’s expected easing of monetary tightening also means that the “pathway to the USD 100,000 level is becoming clearer,” according to Kendrick. The analyst also noted that Bitcoin mining firms have seen increased profitability as their stock prices surged in 2023.
Kendrick concluded that BTC’s broader backdrop for risky assets is improving. “While BTC can trade well when risky assets suffer, correlations to the Nasdaq suggest that it should trade better if risky assets improve broadly,” he said.
Standard Chartered, which predicted that BTC’s price would fall to $5,000 in December 2022, is another bank to make a big U-turn on crypto. Kendrick’s report affirms the bank’s renewed bullishness on Bitcoin, which is expected to continue higher next year in the next bull market cycle.
Bitcoin’s current price is trading down 1.4% on the day at $27,399 at the time of writing. Its resistance at the $30K level was too strong for markets to overcome, and they have entered an expected correction. Total capitalization has slipped 1.3% on the day to $1.2 trillion, and further declines are looking likely this week.
In conclusion, Standard Chartered’s report is yet another bullish forecast for Bitcoin’s future price stability and growth potential, which will bring joy to the thousands of investors who continue to have faith in its stability and long-term growth potential.