By
Steve Muchoki
April 19th, 2024
With all the predictions, it appears that Bitcoin may truly be getting ready for a long rally.
Flagship cryptocurrency Bitcoin could climb as high as $100,000 by the end of next year, according to Standard Chartered. If that level is reached, it would mark a 270% surge from Monday’s level of just over $27,000 that CoinMarketCap data shows.
According to Standard Chartered‘s report, the so-called “crypto winter” is over, and from all indications, Bitcoin is set to go on a gaining stretch.
One of the factors that inform this prediction is the fact that the Federal Reserve is about to end its aggressive rate-hiking cycle. According to Geoff Kendrick, head of digital assets research at Standard Chartered, the move could propel Bitcoin to $100,000. However, he admits that other factors may still hinder this expected rally. Kendrick wrote:
“While sources of uncertainty remain, we think the pathway to the USD 100,000 level is becoming clearer.”
Another factor that formed part of the prediction is that, recently, there has been improved profitability in crypto mining operations. That is not to mention the risks of the banking sector that were recently exposed.
Too Bold Bitcoin Prediction by Standard Chartered?
Generally, there is now a much more optimistic outlook on cryptocurrencies and other risk assets. This is as central banks round off tightening their monetary policies.
However, sky-high predictions such as this are not exactly uncommon in the crypto sector. A Citi analyst once projected that Bitcoin could hit $318,000 by the end of 2022. While that prediction didn’t go as planned, there are many more who are bullish on Bitcoin even for the year running. For example, Venture Capitalist Tim Draper holds the opinion that Bitcoin could rise to as much as $250,000 this year. Draper has held this view since 2021 and reconfirmed his position again last December.
With all the predictions, however, it does appear that Bitcoin may truly be getting ready for a long rally. It has shown some positive signs in the year thus far, rallying above the $30,000 mark this April. Interestingly, that was the first time it crossed that level in ten months.
While Bitcoin has slightly retraced, it is expected that the crypto market in general will continue on the path to recovering from its trillion-dollar losses of 2022.