Standard Chartered’s head of digital assets research, Geoff Kendrick, has predicted that the recent crypto winter is finally over and Bitcoin could potentially reach the USD $100,000 level by the end of 2024. Kendrick believes that the recent instability in the banking sector, the end of the US Federal Reserve’s rate-hiking cycle and the improved profitability of crypto mining will all benefit Bitcoin in the long run.
In his report titled “Bitcoin — Pathway to the USD 100,000 level,” Kendrick suggests that uncertainties still exist, but the path to the $100,000 level is becoming clearer. Bitcoin has already rallied this year, surpassing $30,000 in April for the first time in ten months.
The instability brought on by Silicon Valley Bank’s failure last month is one of the factors contributing to the optimistic outlook. Concerns about a banking contagion led to a resurgence of bitcoin’s use case as a “decentralised, trustless, and scarce digital asset,” the letter claims.
In 2021, Standard Chartered’s newly established crypto-based Research team predicted that Bitcoin could be worth $100,000 by the end of this year or early 2022, but that did not work out well. However, 2022 was a bad year for crypto, with several high-profile implosions of crypto firms like FTX, Celsius, and Terra..
Despite the challenges, Kendrick remains bullish on Bitcoin, stating that “the recent slump in the crypto market was a temporary setback, and Bitcoin is likely to recover and surpass its previous highs in the coming years.”
Many analysts have made similar predictions in the past, and most crypto investors believe that the upcoming “Bitcoin halving” could be a triggering event for another significant surge in the coin’s value. The halving cuts the rewards given to Bitcoin miners by 50%, which could cause a supply shock and increase demand for the cryptocurrency.
According to Kendrick, the halving event is just one of several factors that could drive the price of Bitcoin higher. He believes that the current instability in the banking sector could push more investors towards crypto assets, which are seen as a safer haven in times of economic uncertainty. Furthermore, the end of the US Federal Reserve’s rate-hiking cycle could lead to a stabilization of risk assets and increase investor confidence in Bitcoin.
While there are still risks associated with investing in cryptocurrencies, Kendrick believes that Bitcoin’s long-term prospects are positive.
As the crypto market continues to evolve, it remains to be seen whether Kendrick’s predictions will come to fruition. However, one thing is certain – the crypto sector is likely to remain a volatile and unpredictable space for investors in the years to come.