The crypto winter has passed. Therefore, Bitcoin is on its way to thriving, according to a Standard Chartered paper issued on Monday.
According to the bank, the world’s largest digital currency by market cap might reach $100,000 by the end of 2024. It will mark a 268% rise from current levels.
Standard Chartered’s Geoff Kendrick said he sees potential for Bitcoin to reach the $100,000 level by 2024. Besides, he believes the much-touted ‘crypto winter’ is finally over.
The volatility generated by Silicon Valley Bank’s failure last month is one of the reasons for the positive outlook. Slowly, concerns about a financial meltdown grew. Therefore, Bitcoin re-established itself as a “decentralized, trustless, and scarce digital asset.”
Simultaneously, significant competitors to Bitcoin lost momentum, particularly stablecoins, some of which lost their peg to the US dollar. In reality, SVB possessed some of the assets that supported their worth.
“Against this backdrop, Bitcoin has benefited from its status as a branded safe haven, a perceived relative store of value, and a means of remittance,” Kendrick continues.
According to Standard Chartered, the market is expecting Bitcoin’s overall share to rise to the 50%-60% area. The possible duration is up from 45% today and 40% before the SVB crash.
Furthermore, the paper stated that Bitcoin’s recent climb back above $30,000 constituted a reversal for crypto miners, who had earlier seen mining margins compressed.
Bitcoin’s route to $100,000 is becoming more apparent
Bitcoin has already fallen below $30,000, but Kendrick believes that if prices continue substantially above mining expenses ($15,000), miners will likely keep what they mine rather than sell it.
“In our opinion, this creates price upside.” Furthermore, with energy prices likely to have peaked, the structural profitability backdrop for miners should improve, providing additional upside,” he noted.
The Federal Reserve nears the conclusion of its tightening cycle. So traders also expect Bitcoin to play better in the future. Nonetheless, Kendrick notes that the crypto’s correlation with the Nasdaq shows it could trade higher if risk-on assets improve widely.
Another positive factor is the coin’s impending halving in 2024 when the reward provided to miners will be slashed in half. This is done to limit the number of bitcoins, which has traditionally resulted in price hikes.