Standard Chartered, a well-known international bank, has predicted that Bitcoin may reach as high as $100,000 by the end of 2024. This optimism is expressed in a recent report, “Bitcoin – Pathway to the $100,000 Level.” The report cites recent turmoil in the banking sector, a stabilization of risk assets as the US Federal Reserve ends its interest rate-hiking cycle, and improved profitability of crypto mining as factors contributing to Bitcoin’s potential growth.
Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, said in the report that they believe the “much-touted ‘crypto winter’ is finally over.” He also said that Bitcoin has profited from its reputation as a brand-named safe haven, a perceived relative store of value, and a viable method of transfer.
Bitcoin’s decentralized features have made it a resilient asset in the face of widespread bank failures. In fact, the leading cryptocurrency was the best performing asset in the first quarter, gaining 70% over the period. The increased profitability of crypto miners is another factor that could support Bitcoin’s price, as miners are likely to hold onto their coins if values remain substantially above mining costs.
Halving in 2024, which will cut the quantity of new coins in half, was also identified as a bullish driver by Standard Chartered. Bitcoin optimists argue that the cryptocurrency represents a prudent diversification strategy during economic downturns. As there will never be more than 21 million Bitcoins in circulation, its value will rise in tandem with the demand for inflation-hedging assets.
At the time of writing, Bitcoin was trading at $28,865, up 2% in the last 24 hours, according to data from crypto market tracker Coingecko. While previous Bitcoin rallies have resulted in absurdly high price predictions, Bitcoin optimists believe that the road to $100,000 territory is becoming clearer.
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