Standard Chartered Bank claims that "the spring of cryptocurrencies has arrived" and predicts that Bitcoin will surge by more than 160% to a new high of $100,000 by the end of next year. Standard Chartered believes that continued drivers of Bitcoin include Bitcoin’s continued dominance in the cryptocurrency space, further hoarding by miners, and the halving moment that will arrive early next year.
On Tuesday, Eastern Time, Standard Chartered Bank said that Bitcoin has more than doubled this year and will still more than double to $100,000 by the end of next year.The report declares: “Cryptocurrency spring has arrived,” reaffirming Standard Chartered’s prediction first made in April that Bitcoin would reach six-digit levels by the end of 2024.
Since the beginning of this year, Bitcoin has soared by more than 130%. As of press time, according to Coindesk quotes, Bitcoin is trading at $37,828 per coin. If according to Standard Chartered's bullish forecast, Bitcoin will rise to more than 100,000 US dollars by the end of next year, it means that Bitcoin will rise by more than 160%.
Bitcoin dominance is increasing
Geoff Kendrick, head of FX research at Standard Chartered Bank, writes that continued drivers for Bitcoin includeBitcoin’s continued dominance in the cryptocurrency space, and further hoarding by miners.
In fact, he said, Bitcoin's share of the digital asset market value has jumped from 45% in April to about 50%, and the price of Bitcoin has also increased by more than $10,000 during this period. Not only has Bitcoin’s rally sparked widespread interest in the cryptocurrency space, but it’s also happening earlier than expected.
"Going forward, we expect the rising overall market capitalization of digital assets to be a larger driver of Bitcoin price gains," Kendrick wrote.
At the same time, as the price of Bitcoin rises, miners often choose to hoard more Bitcoins in their hands. In the fourth quarter of last year, the number of Bitcoin sales dropped to about 80% of the previous level.
Halving Will Be a Bull Run Catalyst for Bitcoin
In April next year, Bitcoin will undergo a "halving" every four years, when the new supply of Bitcoin will also decrease. Historical records show that Bitcoin halving is often an important catalyst for Bitcoin to enter a new bull market - the first three halvings all ushered in a sharp rise in Bitcoin prices.
Kendrick said that typically, Bitcoin’s price will peak within 12-18 months after a halving occurs.
Additionally, there was a positive surprise on the demand side given the increasing likelihood that a Bitcoin spot ETF would be allowed to enter the U.S. market.
“We now expect (Bitcoin) prices to see a bigger rally than before in the lead-up to the halving, especially if a U.S. spot ETF is launched earlier than expected. This suggests that Bitcoin could potentially reach $100,000 levels before the end of 2024,” Kendrick wrote.
Kendrick added that given that cryptocurrencies tend to be a very long-term trade, falling Treasury yields could further fuel Bitcoin's gains. Currently, the 30-year Treasury bond yield has fallen to 4.60% from a high of 5.17% last month.
Recently, analysts at Bernstein have also joined the bullish bandwagon on Bitcoin. They predict that Bitcoin could reach $150,000 by mid-2025 due to supply reasons.