As the United States experiences a banking crisis with the collapse of several central banks, Standard Chartered analysts have made a bold Bitcoin price prediction for the next bull cycle. They foresee a rise to $100,000 by the end of 2024, driven by factors such as the decentralized, trustless, and scarce nature of Bitcoin and the increasing stress in the traditional banking sector.
US Banking Crisis Strengthens Case for Bitcoin
Analyst Geoff Kendrick pointed out that the failure of several prominent US banks, such as Silicon Valley Bank, Silvergate, and Signature, has only bolstered the argument for Bitcoin as a decentralized, trustless, and scarce digital asset. Kendrick expressed confidence that the bear market has ended and prices will continue to rise in the next bull market cycle.
Kendrick stated, “We see potential for Bitcoin (BTC) to reach the USD 100,000 level by end-2024, as we believe the much-touted ‘crypto winter’ is finally over.” The ongoing turmoil in the traditional banking sector creates an environment ripe for Bitcoin’s outperformance.”
The Standard Chartered analyst also predicted that Bitcoin’s market dominance would return to the 50-60% range, up from its current level of 47.37% as reported by TradingView. He attributed the recent decline in stablecoin supplies and their ongoing issues as additional factors contributing to Bitcoin’s strength.
An outflow of stablecoins into Bitcoin has been observed this month, with the digital asset reaching a ten-month high of approximately $31,000.
Implications for Monetary Policy and Bitcoin Mining Firms
Speculation regarding the Federal Reserve‘s potential easing of monetary tightening further highlights the “pathway to the USD 100,000 level is becoming clearer,” Kendrick said. He also noted the positive impact on Bitcoin mining companies, whose stock prices have surged in 2023 due to the price jump from below $20,000 to above $30,000.
Kendrick concluded that the overall backdrop for risky assets like Bitcoin is improving. He stated, “While BTC can trade well when risky assets suffer, correlations to the Nasdaq suggest that it should trade better if risky assets improve broadly.”
Standard Chartered’s U-turn on Crypto
Standard Chartered’s bullish prediction significantly shifts the bank’s stance on cryptocurrency. In December 2022, the institution predicted that Bitcoin prices would plummet to $5,000 following the FTX collapse. However, the latest prediction demonstrates how much can change in a matter of months, as the bank anticipates Bitcoin’s value to soar to $100,000 by the end of 2024.
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