Bitcoin is expected to more than double in value by the end of 2024 and reach $100,000, according to a Standard Chartered Bank note on Tuesday.
The bank first made the bullish prediction in April, saying the leading cryptocurrency would reach a six-figure value by the end of next year. Its analysts then raised it to $120,000 in July.
Bitcoin’s price has skyrocketed by 130 percent in 2023, and analysts expect it to continue its upward trajectory of over 160 percent. Its dominance in the digital asset market has also grown, increasing from 45 percent to 50 percent since April. This surge has rekindled interest in the crypto space earlier than expected.
According to Standard Chartered head of FX research Geoff Kendrick, the key factors driving Bitcoin’s price appreciation are its ongoing dominance in the market and the growing tendency of miners to hold onto their tokens, which caused the sales by miners to decline to around 80 percent in Q4.
Bitcoin will hit $100,000 by next year, British multinational bank Standard Chartered has said.
— Whale | Dinobet.io (@WhaleChart) November 28, 2023
In addition, they believe the potential approval of U.S.-based spot Bitcoin ETFs could materialize sooner than anticipated. Several major Wall Street investment firms, including BlackRock, have submitted applications to the U.S. Securities and Exchange Commission (SEC) for their own Bitcoin ETFs.
“We think a number of spot ETFs will now be approved in Q1-2024 for both BTC and ETH, paving the way for institutional investment,” they said.
The approval of these ETFs would bring fresh capital into Bitcoin, as they would allow traditional brokerage accounts to tap into cryptocurrency. Blockchain analysts at CryptoQuant believe that the approval of a spot Bitcoin ETF could inject a staggering $1 trillion into the Bitcoin market, benefiting other digital assets as well.
The upcoming halving in April 2024 is reducing the influx of new coins. This process will continue until the maximum supply of 21 million bitcoins is reached, with about 19.5 million currently in circulation.
This can potentially drive up its price. According to Kendrick, Bitcoin prices tended to peak 12-18 months following a halving event.
JUST IN: $820 billion Standard Chartered Bank predicts #Bitcoin will reach $100,000 by the end of 2024.
— Watcher.Guru (@WatcherGuru) November 28, 2023
Echoing Standard Chartered’s bullish outlook, Fairlead Strategies founder Katie Stockton also believes Bitcoin could continue its upward trajectory and potentially jump to its resistance level at $42,200.
Bitcoin surged over three percent on Tuesday, surpassing the $38,000 mark and reaching an intraday high of nearly $38,300. This ascent brings Bitcoin to levels not seen since May 2022, when it was experiencing a significant decline.
Favorable technical indicators in the medium term reinforce Stockton’s optimism regarding Bitcoin’s potential for further gains in the coming weeks.
A sustained breakout above the $42,200 resistance level for two consecutive weeks would establish a strong long-term bullish signal, paving the way for further Bitcoin price appreciation. In the meantime, Bitcoin’s initial support level lies at its rising 50-day moving average, currently around $33,900.
“Our long-term indicators have shown improvement, but they are not yet decisively bullish. A breakout above $42,200 would affirm a long-term bullish reversal,” Stockton said.
Bitcoin momentum picked up late Tuesday after Federal Reserve governor Chris Waller said that recent economic data indicated a slowdown and continued moderation in inflation. He suggested that current policies were in the “right spot.” He also hinted at the possibility of rate cuts within a few months if inflation continues to decline.
Interest rate decisions can significantly impact markets. Higher rates typically lead to a decline in risk assets like stocks and cryptocurrencies since investors shift their investments toward bonds.