By the end of 2024, the most popular cryptocurrency, bitcoin, may hit $100,000, according to Standard Chartered, which also said that the infamous "crypto winter" is passed.
According to Standard Chartered's head of digital assets research, Geoff Kendrick, Bitcoin could benefit from recent turmoil in the banking industry, a stabilisation of risk assets as the U.S. Federal Reserve ends its cycle of interest rate hikes, and increased profitability of crypto mining.
"While sources of uncertainty remain, we think the pathway to the USD 100,000 level is becoming clearer," Kendrick wrote.
This year, bitcoin has increased in value, climbing beyond $30,000 for the first time in ten months in April. Its gains signal a partial comeback after the crypto market lost trillions of dollars in 2022 as a result of rate hikes by central banks and a number of failed crypto companies.
During previous bitcoin rallies, predictions of exorbitant valuations were frequent. In November 2020, a Citi analyst predicted that bitcoin may reach a peak of $318,000 by the end of 2022. At $16,500, it ended the year with a about 65% loss.
According to Standard Chartered's note from Monday, bitcoin has profited from being a "branded safe haven, a perceived relative store of value, and a means of remittance."
According to Kendrick, the European Parliament's endorsement of the first set of regulations for the European Union's crypto asset markets "should provide a tailwind" for bitcoin.
In a report published on April 5, JPMorgan predicted that a technological modification to the bitcoin network known as its "halving" in April 2024 might increase the value of the cryptocurrency by making it more expensive to manufacture, having a "positive psychological effect."
According to JPMorgan, the recent U.S. banking crisis has benefitted cryptocurrency prices because enthusiasts see it as a "vindication of the crypto ecosystem". Stablecoin proponents claim that they are "less susceptible to runs," according to JPMorgan.
Banks have previously been cautioned by American regulators to watch out for liquidity concerns associated with cryptocurrency-related deposits, such as stablecoin reserves, which may experience fast price changes.
(Source:www.reuters.com)
According to Standard Chartered's head of digital assets research, Geoff Kendrick, Bitcoin could benefit from recent turmoil in the banking industry, a stabilisation of risk assets as the U.S. Federal Reserve ends its cycle of interest rate hikes, and increased profitability of crypto mining.
"While sources of uncertainty remain, we think the pathway to the USD 100,000 level is becoming clearer," Kendrick wrote.
This year, bitcoin has increased in value, climbing beyond $30,000 for the first time in ten months in April. Its gains signal a partial comeback after the crypto market lost trillions of dollars in 2022 as a result of rate hikes by central banks and a number of failed crypto companies.
During previous bitcoin rallies, predictions of exorbitant valuations were frequent. In November 2020, a Citi analyst predicted that bitcoin may reach a peak of $318,000 by the end of 2022. At $16,500, it ended the year with a about 65% loss.
According to Standard Chartered's note from Monday, bitcoin has profited from being a "branded safe haven, a perceived relative store of value, and a means of remittance."
According to Kendrick, the European Parliament's endorsement of the first set of regulations for the European Union's crypto asset markets "should provide a tailwind" for bitcoin.
In a report published on April 5, JPMorgan predicted that a technological modification to the bitcoin network known as its "halving" in April 2024 might increase the value of the cryptocurrency by making it more expensive to manufacture, having a "positive psychological effect."
According to JPMorgan, the recent U.S. banking crisis has benefitted cryptocurrency prices because enthusiasts see it as a "vindication of the crypto ecosystem". Stablecoin proponents claim that they are "less susceptible to runs," according to JPMorgan.
Banks have previously been cautioned by American regulators to watch out for liquidity concerns associated with cryptocurrency-related deposits, such as stablecoin reserves, which may experience fast price changes.
(Source:www.reuters.com)