Recently, market sentiment turned positive as the largest cryptocurrency surpassed $38,000. At this point, various people’s Bitcoin predictions attracted attention. In particular, the statements of Standard Chartered, one of the largest financial institutions, gave hope. Here are the details…
Positive Bitcoin forecast from Standard Chartered
In a new forecast that has caught the attention of the cryptocurrency community, Standard Chartered, a leading financial institution, has predicted a significant increase in the value of Bitcoin. The bank boldly predicts that Bitcoin could reach an impressive $100,000 by the end of 2024. This optimistic outlook is based on a multifaceted analysis, considering Bitcoin’s continued dominance in the cryptocurrency space and the increasing accumulation of digital assets by miners.
Geoff Kendrick, head of FX research at Standard Chartered, emphasized that Bitcoin’s market share has increased from 45% to approximately 50%. This change is seen as a significant contribution, adding an extra $10,000 to the price of Bitcoin. In addition, the potential approval of Bitcoin spot ETFs in the United States is considered a crucial factor influencing Standard Chartered’s bullish forecast. The analysis digs deeper into declining Treasury yields and the trend of miners holding larger amounts of Bitcoin as its price rises.
What are the catalysts behind the rise?
Kendrick expressed his belief that declining Treasury yields could act as a catalyst, further increasing Bitcoin’s value, especially given cryptocurrencies’ historical tendency to serve long-term transactions. The latest report, based on Standard Chartered’s July forecast that Bitcoin would reach $50,000 within the year and $120,000 by the end of 2024, notes that miners are holding larger amounts as Bitcoin’s value rises. Sales of mined Bitcoin fell to around 80% in Q4, setting the stage for the Bitcoin halving in April, which is expected to reduce new supply and potentially lead to a peak in prices 12-18 months later.
Analyst pointed to Bitcoin halving
On the other hand, Charles Edwards, founder of the Capriole Fund and a distinguished cryptocurrency analyst, adds another layer to the discussion, offering his perspective on the future of Bitcoin, especially regarding the upcoming halving event. Edwards predicts that the BTC price will reach $41,200 in just five months and emphasizes that Bitcoin’s electricity cost will double immediately after the halving. The analyst points out historical patterns observed in the last two halvings, where the cost of electricity increased by 65% and 50% of pre-halving values. Edwards predicts a similar trend in the next halving, suggesting that Bitcoin’s historical price floor will be $41,200 in just five months.
Edwards underlines that in April 2024, Bitcoin’s electricity cost, which represents the raw energy cost of Bitcoin mining, will double overnight. This event is considered certain, and inefficient miners are expected to shut down when the Bitcoin reward is halved. The decrease in rewards is perceived as a crucial moment that can positively affect the value of Bitcoin by increasing the cost of mining activities.
Bitcoin prediction from analyst: Explosion is coming
Adding to the optimism, Credible Crypto, a closely followed crypto strategist, believes Bitcoin is poised for a significant upside move. Credible Crypto suggests that Bitcoin’s current slow rise is a harbinger of a breakout rally and expresses confidence in an explosive move to the upside. The analyst draws parallels with the early stages of the 2020 bull market, pointing to the potential for a significant price increase. Credible Crypto predicts that once this vertical accumulation phase is over, the rise in Bitcoin’s price will be significant, potentially surpassing the $40,000 mark.
Drawing on historical examples, the analyst recalls the rally in which Bitcoin rose from $14,000 to $60,000 in a few months in the early stages of the 2020 bull market. But in the short term, Credible Crypto acknowledges uncertainty regarding Bitcoin’s next move. Both bullish and bearish positions are taken at an immediate support level, leading to a situation where volatility is imminent. The analyst states that he is open to the possibility of a long or short squeeze.
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