End Of Crypto-Winter? Bitcoin to rally up, touch $100,000 by 2024, says Standard Chartered
With the crypto winter coming to an end, Standard Chartered seems to have taken a bullish position on Bitcoin, the oldest and the largest cryptocurrency there is. Bitcoin, the world’s most valuable cryptocurrency, has the potential to reach a record high of $100,000 next year, according to Standard Chartered, which claims the so-called ‘crypto winter’ is ended.
According to a research paper published by the UK-based banking giant, the recent banking-sector crisis has helped “re-establish Bitcoin’s use as a decentralised scarce digital asset.”
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“The current stress in the traditional banking sector is highly conducive to BTC outperformance…” CNBC obtained a memo from Standard Chartered analyst Geoff Kendrick.
“Given these advantages, we think BTC’s share of total digital assets market cap could move into the 50-60 per cent range in the next few months (from around 45 per cent currently),” he argued, adding: “While sources of uncertainty remain, we think the pathway to the USD 100,000 level is becoming clearer.”
Following the recent instability in the stock market caused by the US financial crisis, some analysts believe Bitcoin may acquire increased appeal as a “safe haven” for investors.
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Bitcoin’s price has risen 65 per cent this year, surpassing $30,000 in April for the first time in 10 months. The gains came after a 65 per cent drop in 2022, when approximately $1.4 trillion was taken out of the crypto market due to industry bankruptcies. The failure of major cryptocurrency exchange FTX and blockchain payment platform Terra has prompted increased regulatory monitoring of digital assets.
The precipitous drop spurred fears of a “crypto winter,” reminiscent of the catastrophic crypto meltdown of 2018. After an incredible surge, Bitcoin plummeted by more than 80 per cent to as low as $3,100, with no new highs until December 2020. The so-called ‘Great crypto crash’ was worse than the 78 per cent collapse of the Dot-com bubble in March 2000.
Economists are divided on the cryptocurrency’s future, with one Citi analyst predicting in November 2020 that bitcoin might reach $318,000 by the end of 2022. Others, such as crypto-sceptic Peter Schiff, have warned that cryptocurrencies have no value and that investors should sell their digital assets before they become worthless
As of writing this piece, Bitcoin was rallying up at $28,365.70.
If there is anything the crypto-winter has shown us, it is that with the volatility of cryptos, especially with altcoins, investors and adopters need to be very careful.
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