Standard Chartered Bank Analyst Hopes Bitcoin To Reach USD 100K Sooner
The Standard Chartered Bank analyst hopes that the bitcoin price could reach USD 100,000 sooner than was expected in 2024. “We now expect more price upside to materialize before the halving than we previously did, specifically via the earlier-than-expected introduction of US Spot Bitcoin ETFs,” the bank analyst explained.
"Crypto Spring Has Sprung," Says Standard Chartered Bank Analyst
The head of crypto research and Western emerging markets FX at Standard Chartered Bank, Geoff Kendrick, wrote that “crypto spring has sprung,” in a note published on Tuesday. Standard Chartered Bank has once again repeated its bitcoin price forecast of USD 100,000, with more price upside happening sooner than it had predicted earlier.
The analyst explained that the dominance of Bitcoin in the crypto sector and sustained token hoarding by miners continue to push the value of the asset upwards. The crypto market capitalization share for Bitcoin has expanded from 45% in April to about 50%, while its value has surged by more than USD 10,000. The rising price trend has triggered renewed interest in the crypto sector. Kendrick said:
"Going forward, then, we expect digital assets’ rising overall market cap to be a bigger driver of BTC price upside than a continued rise in BTC dominance within the space."
The rising Bitcoin price trend has induced miners to hold onto their BTC, leading to a sharp decline in mined Bitcoin sales to almost 80% in the fourth quarter. The expected Bitcoin halving in April is likely to reduce the supply of new Bitcoin. Historically, bitcoin prices have peaked between 12 and 18 months after a halving, Kendrick noted.
The bitcoin price forecast of USD 100,000 was initially done by the bank in April, announcing an end to the 'crypto winter' and expecting the price to reach USD 100,000 by the end of 2024. However, the bank modified its prediction in July, stating that BTC could reach USD 120,000 next year while emphasizing that the 'crypto winter' has ended.
The Standard Chartered Bank analyst further explained that an unexpected positive development is unfolding on the demand side, with an increasing probability of Spot Bitcoin Exchange-Traded Fund (ETF) approval by the US Securities and Exchange Commission (SEC). Kendrick stated:
"We now expect more price upside to materialize before the halving than we previously did, specifically via the earlier-than-expected introduction of US Spot ETFs. This suggests a risk that the USD 100,000 level could be reached before the end of 2024."
Multiple Spot Bitcoin ETF Applications Under Consideration
Several analysts are expecting the SEC to approve multiple Spot Bitcoin ETFs in 2024. This includes one from Blackrock, the world’s largest asset manager. SEC Chairman Gary Gensler has recently stated that the securities regulator is considering between eight and ten Spot Bitcoin ETF applications.
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