On Monday, April 24, the prominent banking institution, Standard Chartered, claimed that the much-hyped “crypto winter” had eventually come to an end, and further predicted that the world’s first decentralized currency — Bitcoin — may reach the price of $100,000 by the end of 2024. Despite the fact that forecasts of sky-high valuations have been quite regular after previous rallies in Bitcoin’s price, there are a number of elements that are strongly motivating this particular prognosis, according to Standard Chartered’s head of digital assets research Geoff Kendrick. In November of 2020, a Citi analyst predicted that the price of Bitcoin may reach as high as $318,000 by the end of the year 2022. However, at $16,500, the flagship crypto asset was closed out for the year down roughly 65%. So the question is, will this too turn out to be another dud or finally come true?
Bitcoin’s Bullish Factors
The most recent crisis to hit the banking industry in the United States has lately sparked a price boom in Bitcoin and indirectly re-established its primary use case “as a decentralized, trustless, and scarce digital asset,” according to the bank. Additionally, Kendrick pointed out a number of other parameters which he thinks would fuel the price of Bitcoin which includes the fact that the Federal Reserve would no longer be raising interest rates, the fact that the supply bitcoin would be halved again, and that regulatory benefits making into UK and USA would finally be realized.
According to Standard Chartered, the fact that the Federal Reserve of the United States is drawing closer to the conclusion of its cycle of interest rate hikes should be favorable for risk assets in general. Bitcoin, being the king of risk assets, tends to benefit from such a development. Moreover, its increasing connection to the Nasdaq stock market at the present time suggests that the leading cryptocurrency should trade even better if risk assets were to improve more generally. However, Bitcoin’s ability to trade higher during bad periods for risk assets does not preclude it from doing so.
Bitcoin’s Upcoming Halving
The uniqueness of Bitcoin lies in its code. The coding behind the largest cryptocurrency by market cap is designed to ensure that the rate of supply expansion slows down over time. And it’s these in-built halving events that have lent an impact on the price of Bitcoin previously. Because the source code is publicly available, simple calculations determine that the reward for a Bitcoin block is halved every 210,000 blocks, which is equivalent to around once in every four years.
When looking at historical information, we can see that the spot price of bitcoin has climbed by 1,263% between the 2016 and 2020 halvings. If the current trends continue as they are, the price of bitcoin will reach $120,263 on the 23rd of March in 2024 which is in line with Kendrick’s Bitcoin price prediction.
On Sunday , the price of Bitcoin dipped below $27,000 for a short period of time as the broader crypto market continued its decline for five consecutive days. As things stand, Bitcoin’s price is currently exchanging hands at $27,348 which represents a drop of 0.43% over the past 24 hours in comparison to a loss of 7.47% recorded over the past seven days.
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