Bitcoin has been in the financial limelight for the past few years, captivating the attention of investors and traders all over the world. Its unexpected rise to fame has left many wondering about its potential future growth. One prediction that has recently come to light is that Bitcoin could hit $100,000 by the end of 2024, according to Standard Chartered Bank.
Standard Chartered Bank is one of the leading banks in the UK that specializes in trading, investment banking, and wealth management. They have released a report titled, “Bitcoin: or the rise of digital gold,” which delves into the potential of the cryptocurrency and the reasons behind its price growth. In the report, they state that “Bitcoin is the least expensive way to buy and hold a basket of digital assets that are poised to benefit from the digital transformation of the global economy.”
To understand how Standard Chartered came up with this prediction, it’s important to first look at the factors driving the growth in Bitcoin’s price. Firstly, Bitcoin is a finite asset, meaning there is a limited supply of it. According to the cryptocurrency’s code, the maximum supply of Bitcoin is 21 million, with over 18 million already in existence. This scarcity factor keeps the demand for Bitcoin high, as people want to own a piece of this limited resource.
Secondly, Bitcoin’s decentralization makes it independent of any government or financial institution. The cryptocurrency’s blockchain technology eliminates the need for intermediaries and allows for a transparent and secure transaction process. This is particularly attractive to investors who seek a more secure, decentralized way to conduct transactions.
Finally, institutional adoption has significantly increased over the past few years. Big-name companies like Tesla, Square, and MicroStrategy have all invested in Bitcoin, adding credibility and value to the cryptocurrency. In addition, the introduction of Bitcoin futures contracts on major exchanges like the Chicago Mercantile Exchange and the Intercontinental Exchange has made it easier for more traditional investors to buy Bitcoin without the need for storage or custody of the asset.
Standard Chartered’s report highlights these factors, claiming that Bitcoin’s price surge will continue in the years to come. “Our fundamental model for valuing Bitcoin suggests a price of around $50,000 to $100,000 by 2024,” the report states. This prediction is based on the assumption that Bitcoin’s trading volume remains constant and that the coin’s share of the cryptocurrency market cap remains the same. In addition, the report predicts that Bitcoin’s price could reach $175,000 by 2030.
This prediction has caused a stir in the financial world, with many speculating about the potential of digital assets as a whole. However, it’s important to note that while Bitcoin has experienced significant growth in recent years, it is still a highly volatile asset. Its price can fluctuate greatly based on market trends, news events, and investor sentiment. As with any investment, it’s important to do your research and weigh the risks before making any decisions.
In conclusion, Standard Chartered Bank’s report places Bitcoin as a strong contender in the future of finance. With its scarcity, decentralization, and institutional adoption, the cryptocurrency’s future growth potential is hard to ignore. However, as with any investment, it is important to remember that there are many factors at play, and the future is never guaranteed. As always, it is important to seek expert advice and perform thorough research before investing. However, with Bitcoin’s potential, it may be a good idea for investors to start paying attention to this digital gold.
According to a note from Standard Chartered, the top cryptocurrency Bitcoin could potentially reach a value of $100,000 by the end of 2024. The bank believes that factors such as the cryptocurrency’s partial recovery from losses suffered in 2022, the stabilisation of risk assets as the U.S. Federal Reserve ends its rate-hiking cycle, and improved profitability of crypto mining could all contribute to Bitcoin’s value increase.
As per the note, “While sources of uncertainty remain, we think the pathway to the USD 100,000 level is becoming clearer.” This prediction comes as Bitcoin has already rallied this year, hitting above $30,000 for the first time in ten months. Earlier in 2022, the crypto sector faced major losses following central banks hiking interest rates and several crypto firms collapsing. However, Bitcoin’s value started to recover in the latter part of the year, setting the stage for further growth.
Predictions of significant valuations for Bitcoin have been common over the years. In November 2020, a Citi analyst had predicted that Bitcoin could climb as high as $318,000 by the end of 2022. The cryptocurrency ended last year at $16,500, a drop of approximately 65% from the previous year-end.
The note from Standard Chartered is a positive development for Bitcoin and the wider cryptocurrency market. In the near future, the bank plans to explore the potential of central bank digital currencies, stablecoins, and non-fungible tokens (NFTs), all of which are gaining increasing attention in the financial world.
However, it’s worth remembering that the cryptocurrency market is often volatile, and there is always a certain level of unpredictability when it comes to factors that may impact an asset’s value. As such, investors looking to buy Bitcoin should make their decisions based on their own financial goals and risk tolerance levels.
Overall, this news is a positive indication for the future of Bitcoin and other cryptocurrencies. With more and more mainstream companies and investors taking an interest in the digital assets, it’s likely that the market will continue to grow and evolve over the coming years. As such, those who are willing to take on the risks associated with investing in cryptocurrencies may wish to consider adding them to their investment portfolio.