Major Bank U-turns on Bitcoin With $100,000 Price Prediction
In a note published on April 24, Standard Chartered analysts predicted that Bitcoin prices will climb to $100,000 by the end of 2024.
Analyst Geoff Kendrick noted that the collapse of several U.S. banks, including Silicon Valley Bank, Silvergate, and Signature, has solidified the case for Bitcoin as a “decentralized, trustless, and scarce digital asset.”
The bank analyst was confident that the bear market is over and prices will continue higher next year in the next bull market cycle.
“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,”
Bitcoin to Hit Six Figures
The current stress in the traditional banking sector is highly conducive to BTC’s outperformance, he said, according to CNBC.
Kendrick predicted that Bitcoin market dominance would also return to the 50-60% level. It is currently 47.37%, according to Tradingview, having fallen back 3% over the past couple of weeks.
He also said stablecoin woes and shrinking supplies have also benefitted Bitcoin. An outflow of stablecoins into BTC has been seen this month as the asset reached a ten-month high of roughly $31,000.
Speculation that the Federal Reserve will ease monetary tightening further means the “pathway to the USD 100,000 level is becoming clearer,” he added.
In his report, the analyst also noted a benefit to Bitcoin mining firms which have seen stock prices surge in 2023.
“The associated price jump – from below USD 20,000 before the SVB issues to above USD 30,000 – has dramatically increased the profitability of Bitcoin mining companies.”
Kendrick concluded that the broader backdrop for risky assets such as BTC is improving. “While BTC can trade well when risky assets suffer, correlations to the Nasdaq suggest that it should trade better if risky assets improve broadly,” he said.
Standard Chartered is another bank to make a big U-turn on crypto. In December 2022, the bank predicted BTC prices would fall to $5,000 in the wake of the FTX collapse. How things can change in just a few months!
Crypto Market Outlook
Bitcoin prices are currently trading down 1.4% on the day at $27,399 at the time of writing. Resistance at the $30K level was too strong for markets to overcome, and they have entered an expected correction.
Total capitalization has slipped 1.3% on the day to $1.2 trillion, and further declines are looking likely this week.
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