In a remarkable turn of events, Bitcoin, the pioneering cryptocurrency, is poised for a significant surge, with multiple sources, including Standard Chartered, predicting it could reach $100,000 by the end of 2024, Bitcoin’s previous peak was nearly $69,000 in November 2021. This article delves into the reasons behind this bullish forecast, exploring the insights from various industry experts and financial analysts.
Key Points to look out for in this article:
- Standard Chartered predicts Bitcoin is on track to reach $100,000 by the end of 2024.
- Matrixport, a company specializing in cryptocurrency financial services, published a forecast suggesting that Bitcoin could climb to $63,140 by April 2024 and then soar to $125,000 by the end of the following year
- Bitcoin’s dominance in the digital asset market has grown, with miners reducing their sales.
- Anticipation of a U.S. Bitcoin ETF approval next year, coupled with the upcoming Bitcoin halving, is driving a surge in the cryptocurrency market.
- Numerous analysts view the settlement of the FTX case and Binance’s agreement with the U.S. Department of Justice as resolving two major issues that had been troubling the market.
In a research report released on November 28th and referenced by various sources, including Business Insider, the banking heavyweight reaffirmed its optimistic Bitcoin price projections.
Standard Chartered’s Bold Prediction
Based in London, Standard Chartered serves a worldwide customer base, including both individuals and businesses. Although it doesn’t provide retail banking in the UK, its extensive, multi-billion dollar activities in regions like Asia, Africa, and the Middle East make it a major player in the global financial sector.This prominent position in the international financial landscape adds an extra layer of interest to Standard Chartered’s optimistic forecast for Bitcoin made earlier in the month.
Standard Chartered, a British multinational bank, has been at the forefront of these optimistic forecasts. Initially, in April, the bank predicted Bitcoin would hit $100,000 by the end of 2024. This forecast was later revised in July, suggesting a potential peak of $120,000.We now expect price movement to upside to materialize before the halving event than we previously did, specifically because of the earlier than expected introduction of the US spot ETFs,” Geoff Kenrick, Standard Chartered head of FX research wrote.
The bank’s head of crypto research, Geoff Kendrick, attributes this bullish outlook to several factors, including the increasing dominance of Bitcoin in the crypto market, the reduction in Bitcoin sales by miners, and the anticipation of U.S. spot Bitcoin ETFs. This estimate upholds the already positive outlook of the major consumer bank regarding Bitcoin’s future growth. In their July analysis, the focus was on the diminishing supply of BTC as an indicator of potential significant price increases. Kenrick specifically mentioned then that a target of $50,000 by the end of 2023 was likely.
The report announced the onset of a “Crypto spring” and echoed a prediction initially set forth in April, where analysts projected that the foremost digital currency would attain a value in the six-figure range by the close of 2024. Already in 2023, Bitcoin has witnessed a remarkable 130% surge, and this optimistic price perspective suggests further increases exceeding 160%.
Furthermore, he proposed that miners might start retaining a larger portion of their Bitcoin holdings, influenced by the rising hash rate and the forthcoming halving event, which is set to reduce the Bitcoin reward per block by half.
What Matrixport Research says
Last week, Matrixport, a company specializing in cryptocurrency financial services, published a forecast suggesting that Bitcoin could climb to $63,140 by April 2024 and then soar to $125,000 by the end of the following year.
In their report, Matrixport explained, “Our inflation model indicates that the overall macroeconomic environment will continue to favor cryptocurrencies. We expect a further decrease in inflation, which could lead the Federal Reserve to reduce interest rates.”
The firm added, “This scenario, along with various global geopolitical factors, is likely to provide substantial monetary support, propelling Bitcoin to reach new heights in 2024.”
The Role of ETFs and the Halving Event
A significant catalyst for this expected rise is the potential approval of U.S. spot Bitcoin ETFs. These ETFs are anticipated to attract institutional investors, thereby increasing Bitcoin’s mainstream appeal and investment. Additionally, the upcoming Bitcoin halving event in April 2024, which reduces the reward for mining Bitcoin, is expected to further limit supply and potentially drive up prices.
“Geoff Kenrick, Standard Chartered head of FX research summarized by stating, ‘The rise in profitability per Bitcoin mined allows miners to sell fewer coins while still maintaining their revenue, leading to a decrease in the overall Bitcoin supply and consequently driving up the prices of BTC.’”
This month, the story surrounding ETFs has captured significant attention, with a spike in derivatives premiums and growing speculation about a possible approval in January.
The price path of BTC has shown a strong reaction to such news. In early November, the market experienced a swift upsurge due to expectations of an imminent approval by U.S. regulatory bodies before January.
Simultaneously, there’s ongoing apprehension about major investors offloading their holdings following the approval — a classic case of “buy the rumor, sell the news” scenario, potentially disadvantaging those who enter the market late.
This situation arises as the SEC’s efforts to prevent spot ETFs have faced several legal setbacks. These ETFs are expected to inject new funds into Bitcoin by enabling conventional brokerage accounts to invest in the cryptocurrency.
Kendrick also noted that declining Treasury yields might further boost Bitcoin, as cryptocurrencies are often seen as long-term investments. Notably, the 30-year yield has decreased to 4.60%, down from a peak of 5.17% in the previous month.
Additionally, Standard Chartered’s optimistic stance has been echoed by Bernstein analysts, who foresee Bitcoin potentially reaching $150,000 by mid-2025, citing similar reasons related to supply constraints.
Industry Executives’ Views
Executives in the cryptocurrency industry, such as Pascal Gauthier, CEO of Ledger, and David Marcus, CEO of Lightspark, have expressed optimism for Bitcoin’s future. They see the resolution of recent industry issues, such as the FTX collapse and legal challenges faced by Binance, as paving the way for more focused technological development and mainstream adoption.
Bitcoin’s previous peak was nearly $69,000 in November 2021. The cryptocurrency sector has since faced numerous challenges, including project failures, bankruptcies, and legal issues. Notably, the FTX exchange collapsed, leading to its founder Sam Bankman-Fried being convicted on multiple counts of criminal fraud, potentially facing over a century in prison. Concurrently, Binance’s Changpeng Zhao admitted to criminal charges and resigned as CEO, following a $4.3 billion settlement with the U.S. Department of Justice. These legal resolutions are viewed by many as closing chapters on significant issues that have troubled the crypto market.
Have look at the key statements from all of them:
- Pascal Gauthier, CEO of Ledger, expressed to CNBC that 2023 seemed like a preparation year for an upcoming bull market, with high hopes set for 2024 and 2025.
- David Marcus, CEO of Lightspark and former head of Facebook’s Diem stablecoin project, told CNBC that moving past the speculative phase allows for a focus on technological development and real-world problem-solving, rather than mere trading.
- Gauthier believes that the potential ETF approval signifies Bitcoin’s move towards mainstream acceptance.
- Vijay Ayyar, Vice President of International Markets at CoinDCX, mentioned to CNBC that while a bull run is expected post-halving, the ETF news might trigger an earlier rally, potentially sidelining many investors and causing a significant price surge. Ayyar mentioned that Bitcoin’s price is currently stabilizing under a crucial threshold of $38,000, a sign that bodes well for its future growth. He suggested that if Bitcoin surpasses this level, it could potentially surge to a range of $45,000 to $48,000. He also cautioned, “A complete rejection of the ETF could significantly disrupt this upward trend, so it’s an important factor to keep an eye on.”
Bitcoin’s Current Market Performance
As of the latest reports, Bitcoin has shown a significant rally, with its price surpassing $38,200. Its market cap stands at around $740 billion, and its dominance in the digital asset market has increased from 45% in April to about 50%. This growth has been fueled by institutional interest and a general uptick in the crypto market.
Wall Street’s Interest and the Macro Environment
Wall Street’s growing interest in Bitcoin ETFs and the broader macroeconomic environment are also playing roles in Bitcoin’s price movement. Analysts from firms like Bernstein have joined the chorus of bullish predictions, with some even projecting a price of $150,000 by mid-2025.
The consensus among financial analysts, industry executives, and market observers is overwhelmingly positive for Bitcoin’s future. With the combination of institutional interest, technological advancements, and macroeconomic factors, Bitcoin seems to be on a trajectory towards unprecedented heights. While the crypto market is known for its volatility, the current trends and expert predictions paint a promising picture for Bitcoin reaching or even surpassing the $100,000 mark by the end of 2024.
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