Crypto winter is behind us, and the bull market for bitcoin is returning, according to Standard Chartered. The bank believes bitcoin could reach $100,000 in 2024 as regulatory support grows and fundamentals like supply and demand dynamics improve.
Geoff Kendrick, the head of the crypto and F.X. research at Standard Chartered, has expressed optimism about the future of Bitcoin. In a note on Monday, Kendrick stated that he believes the “crypto winter” is finally over and that there is potential for Bitcoin to reach $100,000 by the end of 2024, media reports said.
The recent turmoil at major U.S. banks reignited interest in bitcoin as a “decentralized, trustless and scarce digital asset,” the bank said. It also pointed to the end of Federal Reserve interest rate hikes, the upcoming halving of bitcoin’s supply, and beneficial regulations as catalysts for further growth.
According to analysts, Bitcoin’s current trading price is roughly $27,000, climbing from under $17,000 earlier this year. The loss of stability experienced by stablecoins has also played a critical role in revitalizing Bitcoin as the “digital gold,” with analysts citing Circle’s USDC stablecoin as an example of de-pegging after it was revealed that the coin was backed by a troubled bank holding $3.3 billion.
A colleague of Kendrick’s predicted bitcoin could fall to $5,000 in December, but Kendrick sees far more upside. Bitcoin benefits from its status as a “safe haven” asset with perceived value and remittance uses, leading Standard Chartered to expect its dominance will keep rising.
Risk assets should gain with the Fed paused on rate hikes, helping bitcoin, though its Nasdaq correlation means it could benefit more if risk assets broadly recover. The next bitcoin halving, reducing new supply by half, should also boost the price, as seen after previous halvings. The halving is estimated for March 2024.
Kendrick stated, “The current situation is expected to boost the existing structural advantages of Bitcoin, and this is likely to continue. Additionally, regulatory advancements are anticipated to support Bitcoin in the long run.” Europe’s new MiCA rules could spur interest and volatility, and the U.S. and U.K. may follow suit.
After years of struggling, bitcoin has momentum again and significant support from one of the world’s largest banks. If regulation and fundamentals align fully with Standard Chartered’s bullish view, $100,000 bitcoin may be close.
