Bitcoin has been gaining significant attention amongst the financial and technology communities for the past few years. Despite its notorious volatility and lack of regulation, Bitcoin has become a popular investment asset for individuals and institutions who are looking to diversify their portfolios. While many predictions have been made regarding the future of Bitcoin, a recent report by Standard Chartered has caught the attention of many investors.
According to the report, Bitcoin’s value will rise to $100,000 by 2024 due to a combination of factors. These factors include the increasing adoption of cryptocurrencies by institutional investors, the low interest rate environment that is likely to continue, and the limited supply of Bitcoin itself.
For many years, the adoption of cryptocurrencies by institutional investors has been a theme in the financial industry. Large investment firms such as BlackRock and Fidelity have been exploring ways to offer Bitcoin as part of their investment products, and this trend is likely to continue. The Standard Chartered report predicts that as these institutional investors increase their exposure to Bitcoin, it will drive up demand and ultimately the price of the cryptocurrency.
Another factor that could contribute to Bitcoin’s rise is the ongoing low interest rate environment. Governments around the world have been keeping interest rates at historic lows to stimulate economic growth, and this is not likely to change anytime soon. With traditional investment vehicles such as bonds and savings accounts offering low returns, investors are turning to alternative assets such as cryptocurrencies to earn higher returns. This shift in investor behavior could also contribute to Bitcoin’s rise.
Finally, the limited supply of Bitcoin is also a key factor in the Standard Chartered report. There are only 21 million Bitcoins that will ever be created, and more than 18 million of them have already been mined. As the supply of Bitcoin nears its limit, the demand for the cryptocurrency is likely to increase. This, combined with the other factors mentioned above, could drive up the price of Bitcoin to $100,000 by 2024.
While the prediction of Bitcoin reaching $100,000 may seem far-fetched to some, it is important to note that cryptocurrency has proven to be a volatile asset in the past. In 2017, Bitcoin reached an all-time high of nearly $20,000 before crashing down to below $4,000 by the end of 2018. However, since then, Bitcoin has been rising steadily and has reached a new all-time high of over $60,000 in 2021.
The current market conditions also support the prediction that Bitcoin will continue to grow in value. The COVID-19 pandemic has accelerated the adoption of digital assets, and many individuals have been exploring cryptocurrencies as a “digital gold” to hedge against inflation and economic uncertainty.
In addition, the recent announcements of major cryptocurrency investments by companies such as Tesla and Square have given Bitcoin a level of legitimacy previously unknown to the cryptocurrency market. This mainstream acceptance could continue to drive up demand and contribute to Bitcoin’s rise in value over the next few years.
However, it is important to remember that Bitcoin is an extremely volatile asset, and investing in it carries a significant amount of risk. While the Standard Chartered report suggests that Bitcoin could reach $100,000 in value, it is important for investors to do their own research and assess their risk tolerance before investing in any cryptocurrency.
In summary, the recent report by Standard Chartered suggests that Bitcoin could reach a value of $100,000 by 2024. Factors such as the increasing adoption of cryptocurrencies by institutional investors, the low interest rate environment, and the limited supply of Bitcoin could all contribute to its growth. However, investors should proceed with caution and remember that cryptocurrency remains a highly volatile asset class.
Standard Chartered, a multinational banking and financial services company, has forecasted the value of Bitcoin to reach $100,000 by the end of 2024. Despite the recent collapse of crypto prices after a multi-week rally, Standard Chartered remains optimistic. The bank states that underlying the case for Bitcoin as a “decentralized, trustless and scarce digital asset” are the collapse of mid-tier US banks, including Silicon Valley Bank.
Earlier this week, 23,860 crypto traders were liquidated at a value of $80m. Coinglass, a platform for tracking crypto liquidations, attributed most of these liquidations to traders who held leveraged long positions and speculated that the recent rally would continue.
The news comes as Bitcoin fell to $27,278, a decline of 7%. It is still up 66% since the beginning of the year, reaching $30,000 in April, which marked the first time in 10 months.
Standard Chartered suggests that the current stress in traditional banking sectors is highly conducive to Bitcoin outperformance and validates the original premise of Bitcoin. The bank cites stabilisation of risk assets later in the year after the US Federal Reserve ends its rate-hiking cycle as reasons why the pathway to the $100,000 level for Bitcoin is clear.
Standard Chartered will not be the first to make bullish predictions for Bitcoin. Last month, Citibank also suggested the value of Bitcoin could reach $300,000 in 2021.
Despite these bullish predictions, Bitcoin is not without its detractors, with former Monetary Authority of Singapore chief Ravi Menon predicting in February that Bitcoin may never recover from its current crash. This crash was triggered by Elon Musk’s tweets about Bitcoin’s energy consumption, resulting in a flash crash of the cryptocurrency.
Only time will tell which prediction will prevail. However, with increased institutional support and major companies like Tesla and Visa endorsing Bitcoin, it is clear that cryptocurrencies are here to stay. It remains to be seen what the future holds for Bitcoin and other digital currencies, but predictions like those from Standard Chartered and Citibank suggest that we are only at the beginning of what is possible for cryptocurrencies.