Anyone who keeps up with the cryptocurrency world can tell you one of the most used forms of finding information about a currency is to find out the highest predicted value of that currency. Some take it further to get into the statistics of it, but we'll just be content with finding reliable sources.
Crypto winter is finally over and Bitcoin (BTC), the world's largest cryptocurrency, has the potential to reach $100,000 by year-end, according to a research report by Standard Chartered Bank.
The climb to $100,000 could be driven by a number of factors, including the recent banking sector crisis that helped to “re-establish bitcoin’s use as a decentralized scarce digital asset,” the bank said in the report on Monday.
Predictions of sky-high valuations have been commonplace during Bitcoin's past rallies. Which to be honest happens almost every year. So, take this prediction with a grain of salt.
What I do when any crypto is predicted to increase is make a list of the ones that I want to invest in. Each month I choose one of the coins and invest as little as $10. In case it is a huge prediction involving BTC, ETH, LTC or BCH, I raise that amount up to $100. Now, I make money from just the interest of keeping these coins. Create an account and start earning interest now! Just buy crypto worth $100 for 30 days and earn $25 in BTC + daily interest.
“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,” analyst Geoff Kendrick wrote. Bitcoin has gained 65% since the start of the year. It rose above $30,000 for the first time in almost a year last week. It was recently trading at $27,328, down 1.2% in the past 24 hours.
The report also noted one of the drivers for the price to reach $100,00 is the broader macro backdrop for risky assets gradually improving as the Federal Reserve nears the end of its tightening cycle. “While BTC can trade well when risky assets suffer, correlations to the Nasdaq suggest that it should trade better if risky assets improve broadly,” Kendrick said.
Standard Chartered expects Bitcoin’s share of the entire crypto market capitalization to rise back to the 50-60% range. The Bitcoin dominance rate is now around 47%, according to data from TradingView. It was around 40% during the fallout of Silicon Valley Bank in mid-March.
Bitcoin’s upcoming halving – the process whereby the rewards for mining a new block get halved every four years – is also poised to be a positive driver for Bitcoin, Kendrick wrote. “As we approach the next halving, we expect cyclical drivers to become more constructive, as they have in previous cycles,” he said.
In Monday's note, Standard Chartered said that Bitcoin has benefited from its status as a "branded safe haven, a perceived relative store of value and a means of remittance."
Kendrick said the European Parliament's backing of the European Union's first set of rules to regulate crypto asset markets "should provide a tailwind" for bitcoin.
JPMorgan said in a note on April 5 that a technical change to the Bitcoin blockchain in April 2024, known as its "halving", could boost its price by making it more expensive to produce, causing a "positive psychological effect".
JPMorgan said that cryptocurrency prices have already benefited from crypto enthusiasts interpreting the recent U.S. banking crisis as a "vindication of the crypto ecosystem". Crypto supporters say stablecoins are "less susceptible to runs", JPMorgan said.
U.S. regulators have previously told banks to be alert for liquidity risks coming from crypto-related deposits, such as stablecoin reserves, which could be subject to rapid outflows.
