Standard Chartered analyst predicts the value of bitcoin will reach $100,000 by 2024

Standard Chartered predicts that bitcoin (BTC) could reach a value of $100,000 by the end of 2024, according to a report released Monday. The report said the collapse of Silicon Valley Bank and other U.S. middle-market lenders helped strengthen bitcoin's position as a "decentralized, reliable and scarce digital asset." Standard Chartered analyst Jeff Kendrick, author of the report, believes that the current stress in the traditional banking sector confirms the original premise for bitcoin and could lead to BTC outperforming other assets.

 

According to Kendrick, the jump in the price of BTC from below $20,000 before the SVB issues to above $30,000 has dramatically increased the profitability of bitcoin mining companies, and miners are unlikely to sell many coins, which would be a positive for the cryptocurrency. Kendrick also notes that the broader macroeconomic backdrop for risky assets is gradually improving, which could also support Bitcoin's price rise.

 

The report says that BTC's share of the total digital asset market could move into the 50-60% range in the next few months from about 45% currently. Kendrick believes that "the path to the $100,000 level is becoming clearer," given the recent stabilization of risky assets and speculation that the U.S. Federal Reserve will continue to ease monetary policy.

 

Standard Chartered is not alone in its prediction of a bullish future for BTC. Last month, several cryptocurrency industry insiders predicted that bitcoin will hit a new all-time high in 2023. One executive at U.S. cryptocurrency exchange Gemini told CNBC that the likelihood of reaching $100,000 is very real. Meanwhile, on the bearish end of the spectrum, Standard Chartered itself suggested that the cryptocurrency could fall to $5,000 on the market's surprise list for 2023.

 

Bitcoin advocates argue that cryptocurrency is an asset worth diversifying into in times of economic hardship. With a limited supply of 21 million bitcoins, bitcoin should appreciate as demand for alternative assets increases to avoid the effects of high inflation. Last year, however, BTC failed this test, falling 65%, the second worst year for bitcoin ever, amid tumultuous events involving multibillion-dollar collapses by companies like FTX and Terra and regulatory restrictions.

 

Bitcoin is currently trading at $27,601.55 according to CoinGecko. The recent failures of Circle's USD Coin and other stackablecoins, which are seeking to achieve a 1-to-1 peg to the U.S. dollar, have also benefited bitcoin. Kendrick says USDC lost its peg to the dollar after its issuer Circle revealed a link to SVB, and the coin's total market value has fallen to $30.7 billion from more than $43 billion since March 10, when the bank was placed in U.S. government custody.