According to a note by Standard Chartered, Bitcoin is predicted to surge to $100,000 by the end of 2024 as the “crypto winter” comes to a close. Bank turmoil, the Bitcoin halving, and the expected end of Fed rate hikes are some of the factors that could contribute to this rise. Bitcoin has seen its fair share of ups and downs, with prices hitting all-time highs in 2017 before crashing to under $4,000 in early 2019. However, the cryptocurrency has recently seen a resurgence, with prices spiking to over $60,000 in early 2021 before settling around $30,000.
One of the key drivers of Bitcoin’s potential rise is the turmoil in traditional banking. Banks can be vulnerable to financial crises, regulatory challenges, and technological disruption. This has prompted many investors to seek alternative assets that are not subject to the same risks. Bitcoin, as a decentralized digital currency, has emerged as one such asset. Additionally, institutional adoption of Bitcoin has been on the rise. This has helped legitimize Bitcoin in the eyes of many investors and could contribute to its long-term growth.
Another factor that could contribute to Bitcoin’s rise is the upcoming “halving” event. This involves a reduction in the amount of new Bitcoins that are created and historically leads to a rise in Bitcoin prices. The next halving is expected to occur in 2024.
If the US Federal Reserve begins cutting rates again, it could benefit Bitcoin in a number of ways. Lower interest rates could make it more attractive for investors to hold alternative assets like Bitcoin. Additionally, lower interest rates could lead to higher inflation, which could drive investors towards alternative assets that are not subject to inflationary pressures.
While the potential for Bitcoin to reach $100,000 is compelling, there are still many sources of uncertainty that could derail this optimistic outlook. The biggest risks are regulatory intervention, market volatility, technical challenges, and competition from other cryptocurrencies. Investors who are considering investing in Bitcoin should carefully weigh these factors and assess their own risk tolerance before making any investment decisions.