Bitcoin, the world’s largest cryptocurrency, could climb to $100,000 by the end of 2024, according to a research note by Standard Chartered’s head of digital assets research, Geoff Kendrick. In the note, Kendrick cited several factors that could contribute to Bitcoin’s growth, including the recent turmoil in the banking sector, a stabilization of risk assets, and an improvement in the profitability of crypto mining.
Despite sources of uncertainty remaining, Kendrick wrote, “We think the pathway to the USD 100,000 level is becoming clearer.” The prediction comes after Bitcoin rallied this year, reaching above $30,000 in April for the first time in ten months. This represented a partial recovery after trillions of dollars were wiped from the crypto sector in 2022 as central banks raised interest rates and a string of crypto firms imploded.
The rally in bitcoin’s value this year has led to predictions of sky-high valuations. In November 2020, a Citi analyst said that Bitcoin could climb as high as $318,000 by the end of 2022. However, bitcoin closed last year down approximately 65% at $16,500.
Kendrick’s note noted that the stabilization of risk assets could have a positive impact on Bitcoin’s value. He also pointed to the improving profitability of crypto mining, which could help drive demand for the cryptocurrency. Additionally, turmoil in the banking sector could make Bitcoin more appealing as an alternative investment.
The note cautioned that there are still risks involved in investing in Bitcoin, including regulatory uncertainty and cybersecurity concerns. However, Kendrick suggested that the overall trend is positive for cryptocurrency.
Bitcoin Under Review
Bitcoin, which was created in 2009, has seen its value fluctuate significantly over the years, reaching its all-time high of almost $65,000 in April 2021 before falling back down to $30,000 in June. Cryptocurrency has often been the subject of debate, with some seeing it as a speculative asset while others view it as a legitimate store of value and a hedge against inflation.
Despite the volatility, there has been growing interest in cryptocurrencies from institutional investors and financial institutions, which could help to drive up the price of bitcoin and other digital assets. In recent months, major companies such as Tesla and PayPal have announced plans to accept Bitcoin as a form of payment, while some banks and asset managers have started offering cryptocurrency-related services to their clients.
The growth of the cryptocurrency market has also attracted the attention of regulators, who are grappling with how to regulate the sector. In the US, for example, the Securities and Exchange Commission (SEC) has been cracking down on initial coin offerings (ICOs) and other forms of cryptocurrency-related fraud, while the Commodity Futures Trading Commission (CFTC) has been regulating bitcoin futures trading.
Despite the challenges, many in the cryptocurrency community remain optimistic about the future of Bitcoin and other digital assets. They argue that the technology behind cryptocurrencies, known as the blockchain, has the potential to revolutionize many aspects of the financial industry, including payments, remittances, and cross-border transactions.
Standard Chartered’s prediction that Bitcoin could reach $100,000 by the end of 2024 is the latest in a series of bullish forecasts for the cryptocurrency. While there are still risks and uncertainties associated with investing in digital assets, the growing interest from institutional investors and financial institutions suggests that cryptocurrencies are here to stay. As such, it will be interesting to see how the market evolves in the coming years and whether Bitcoin will continue to be a major player in the world of finance.
In conclusion, the latest report by Standard Chartered suggests that Bitcoin could reach a significant milestone by the end of 2024. While the prediction remains uncertain, it is worth noting that the cryptocurrency’s value has been on the rise this year after a tumultuous 2022.
