According to a note published by Standard Chartered on Monday, the collapse of Silicon Valley Bank and other mid-tier U.S. lenders has strengthened the case for Bitcoin as a decentralized, trustless and scarce digital asset.
Analyst Geoff Kendrick believes that the much-touted “crypto winter” is finally over, and he sees potential for Bitcoin to reach $100,000 by the end of 2024. Kendrick suggests that the current stress in the traditional banking sector is highly conducive to Bitcoin’s outperformance and validates the original premise for Bitcoin.
Furthermore, Kendrick notes that, given Bitcoin’s advantages, its share of the total digital asset market cap could move into the 50–60% range in the next few months. The cryptocurrency was trading at $27,413 as at the time of this post.
Kendrick argues that the stabilization of risk assets and speculation that the Federal Reserve will ease monetary tightening further means the pathway to $100,000 is becoming clearer. Proponents of Bitcoin believe that it is an asset worth diversifying into in times of economic distress.
As the theory goes, Bitcoin has a limited supply of 21 million bitcoins, meaning it should appreciate as demand for alternative assets grows to avoid the effects of high inflation. Standard Chartered isn’t the only one predicting a strong rally in Bitcoin’s price.
Multiple crypto industry insiders forecast Bitcoin to hit a new all-time high in 2023. Some crypto investors are pointing to the anticipation of the next so-called Bitcoin “halving” as a potential catalyst for another monster rally in the coin’s price.
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