Analysts think that the price of Bitcoin could reach $100,000 by the end of 2024.
Standard Chartered said on Monday that the so-called “crypto winter” is over and that Bitcoin, the most popular cryptocurrency, could reach a record high of $100,000 next year.
According to a report from a large UK bank that the media picked up, the current banking sector crisis has helped “re-establish Bitcoin’s use as a decentralised, scarce digital asset.”
“The stress in the traditional banking sector right now makes it very likely that BTC will outperform.” Geoff Kendrick of Standard Chartered wrote in the note, which was seen by CNBC.
“Given these benefits, we think BTC’s share of the market capitalisation of all digital assets could rise to between 50 and 60% in the next few months, from about 45% right now,” he said, adding, “While there are still some unknowns, we think the path to USD 100,000 is becoming clearer.”
Some experts think that after the recent turmoil in the stock market caused by the US banking crisis, Bitcoin will become more popular as a “safe haven” for investors.
So far this year, Bitcoin’s price has increased by 65%. In April, it went above $30,000 for the first time in ten months. After a drop of 65% in 2022, when nearly $1.4 trillion was lost from the crypto market because of failures in the sector, the market went up. Both the major cryptocurrency exchange FTX and the blockchain payment site Terra went down, which made regulators look more closely at digital assets.
The sudden sell-off made people worry about a so-called “crypto winter,” which would be like the big crypto crash of 2018. Back then, after a boom that had never happened before, Bitcoin dropped by more than 80% to as low as $3,100 and didn’t hit a new high until December 2020.
The so-called “Great Crypto Crash” was worse than the fall of 78% of the Dot-Com bubble in March 2000. Economists have different ideas about what will happen to cryptocurrency in the future. One Citi economist said in November 2020 that the price of Bitcoin could reach $318,000 by the end of 2022.
Others, like Peter Schiff, who doesn’t believe in cryptocurrencies, have been saying that they have no value and that buyers should sell their digital assets before they lose all value.
On Tuesday, one bitcoin was worth $27,423, which was 0.1% less than the day before.