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 US banks, including Silicon Valley Bank, Silvergate and Signature, has strengthened the case for Bitcoin as a “decentralised, trustless and scarce digital asset.”
The bank analyst was confident that the bear market is over and that prices will continue higher next year in the next bull market cycle.
“We see the potential for Bitcoin (BTC) to reach the USD 100,000 level by the end of 2024, as we believe the much talked about ‘crypto winter’ is finally over.”
Bitcoin hits six figures
The current stress in the traditional banking sector is very beneficial for 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, after falling back 3% in the past couple of weeks.
He also said that stablecoin issues and shrinking supplies have also benefited Bitcoin. An outflow of stablecoins into BTC has been seen this month as the asset hit a ten-month high of roughly $31,000.
Speculation that the Federal Reserve will further ease monetary tightening means “the path to the $100,000 level is becoming clearer,” he added.
In his report, the analyst also noted an advantage for Bitcoin mining companies that have seen their share prices rise in 2023.
“The associated price jump – from below US$20,000 before the SVB issuance to over US$30,000 – has dramatically increased the profitability of Bitcoin mining companies.”
Kendrick concluded that the broader backdrop for risky assets like BTC is improving. “While BTC may trade well when risky assets suffer, correlations to the Nasdaq suggest it should trade better if risky assets broadly improve,” he said.
Standard Chartered is another bank making a big U-turn on crypto. In December 2022, the bank predicted that 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 to $27,399 at the time of writing. The resistance at the $30K level was too strong for the markets to overcome and they have entered an expected correction.
Total capitalization has fallen 1.3% on the day to $1.2 trillion, and further declines appear likely this week.
