The corporation has revealed that Bitcoin could surge up to $100,000 by 2024’s end. As the crypto winter has melted away, it gives rise to such predictions.
“We see the potential for Bitcoin to reach the USD 100,000 level by end-2024, as we believe the much-touted ‘crypto winter’ is finally over” – said Geoff Kendrick from Standard Chartered.
One of the main reasons behind this assumption is the Silicon Valley Bank’s collapse that took place last month. Understandably, there was quite a turmoil and the result was the worry behind a banking contagion spread. This is where Bitcoin reappears to pose as the “decentralized, trustless, and scarce digital asset”, said the note.
At the same moment, bitcoin’s key rivals, like stablecoins, lost their ground. Some of them lost their peg to the US dollar. SVB held some of their assets which backed their value as a whole.
“Against this backdrop, Bitcoin has benefited from its status as a branded haven, a perceived relative store of value and a means of remittance,” Kendrick added.
Standard Chartered recognises bitcoin’s total share in the crypto market cap adds up to the 50-60% range. It rose from the value of 45% today and about 40% before the collapse of SVB.
This was a turnaround moment for crypto miners as the recent bitcoin rebound went to $30,000 as they were involved when they saw the mining margins get squeezed.
Since then, bitcoin has been seeing a dip. But to make matters interesting, Kendrick slyly mentions how miners would hold onto what they mine instead of selling them so long as the prices remain above the cost of mining, which is $15,000.
He also wrote that this creates a price upside, in the bank’s view. In addition, with energy prices likely having peaked, the structural profitability backdrop for miners should improve, adding further upside.
Bitcoin had always set its sail towards being a better trade in the future rather than now. It is safe to say that the goal is closer than ever as the Federal Reserve is closing in on its tightening cycle. Kendrick said this taking into consideration the correlation it has with Nashaq. This adds further to the suggestion of the right time for a crypto to be traded, especially if the risk-on assets see broad improvements.
Another thing to look at is the upcoming halving system in 2024 where the coin’s value is cut in half, leading to the reward that would be received by miners being cut in half. As a historic practice, this is the plan of action to cap the supply of bitcoins which should result in a price increase.
Bitcoin also has better chances of an upswing due to the regular changes that promote investor access to the market; the creation of digital asset ETFs and stablecoin regulation, for instance. Some of the proposals passed in Europe already hold positive implications for the volatility of crypto.
