Standard Chartered Anticipates Bitcoin Reaching $100,000 Sooner Than Expected

Standard Chartered Anticipates Bitcoin Reaching $100,000 Sooner Than Expected

If you’re a Bitcoin enthusiast, get ready to be excited. Standard Chartered Bank is anticipating that Bitcoin will reach $100,000 sooner than expected. The bank’s analyst explained that the introduction of U.S. spot Bitcoin exchange-traded funds (ETFs) is expected to contribute to the price surge. Standard Chartered Bank has maintained its $100,000 Bitcoin price forecast, citing the cryptocurrency’s dominant position in the market and increased token hoarding by miners as driving factors. With Bitcoin’s upward trajectory, miners are holding onto their BTC, reducing the supply, and further boosting the price. Additionally, the upcoming Bitcoin halving in April is expected to decrease the supply of new Bitcoin. This positive outlook is also fueled by the potential approval of multiple spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) next year. With all these factors combined, the bank believes that the $100,000 mark could be reached before the end of 2024.

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Standard Chartered’s Bitcoin Price Prediction

Standard Chartered Bank has reiterated its bitcoin price forecast of $100,000 with more price upside happening sooner than it previously predicted. In a note published Tuesday, Standard Chartered’s head of crypto research and Western emerging markets FX, Geoff Kendrick, wrote that “crypto spring has sprung.”

The analyst explained that Bitcoin’s unwavering dominance in the cryptocurrency space and heightened token hoarding by miners continue to drive the asset’s upward trajectory. Bitcoin’s share of the crypto market cap rose from 45% in April to approximately 50% while its value surged by over $10,000. The price upswing has sparked renewed interest in the cryptocurrency space. Kendrick shared:

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.

As Bitcoin’s price escalates, miners are increasingly holding onto their BTC, leading to a sharp decline in mined bitcoin sales to around 80% in the fourth quarter. The upcoming Bitcoin halving in April will further reduce the supply of new bitcoin. Kendrick noted that historically, bitcoin prices peaked 12-18 months after a halving.

The bank initially forecasted a bitcoin price of $100,000 back in April, declaring that crypto winter is over and anticipating that the price could reach $100,000 by the end of 2024. In July, the bank adjusted its prediction, stating that BTC could reach $120,000 next year while emphasizing that crypto winter has ended.

The Standard Chartered 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 U.S. Securities and Exchange Commission (SEC). Kendrick detailed:

We now expect more price upside to materialize before the halving than we previously did, specifically via the earlier-than-expected introduction of U.S. spot ETFs. This suggests a risk that the $100,000 level could be reached before end-2024.

Many analysts expect the SEC to approve multiple spot bitcoin ETFs next year, including one from Blackrock, the world’s largest asset manager. SEC Chairman Gary Gensler recently stated that the securities regulator is considering between eight and 10 spot bitcoin ETF applications.

Expectation of Spot Bitcoin ETFs

With the expectation of spot bitcoin ETFs entering the market, there is growing anticipation of their impact on the Bitcoin price. Spot bitcoin ETFs provide investors with exposure to the price movements of bitcoin without having to directly own the cryptocurrency. This accessibility and ease of trading could attract a significant amount of capital into the bitcoin market.

The introduction of U.S. spot ETFs is expected to have a positive effect on the price of bitcoin. As availability and accessibility increase, more investors may consider allocating a portion of their portfolio to bitcoin. This increased demand can potentially drive up the price of bitcoin. Additionally, the launch of spot ETFs can enhance the mainstream adoption and acceptance of bitcoin as a legitimate asset class.

However, the approval process for spot bitcoin ETFs is under the jurisdiction of the U.S. Securities and Exchange Commission (SEC), which has been cautious and deliberate in its approach to cryptocurrencies. The SEC’s main concern is investor protection, and it will carefully assess the risks associated with spot ETFs before granting approvals. Despite the challenges, there is growing optimism that the SEC will approve multiple spot bitcoin ETFs in the near future.

The potential introduction of spot bitcoin ETFs in 2024 has generated significant interest and discussion within the cryptocurrency community. If approved, these ETFs could revolutionize the way investors engage with bitcoin and bring substantial liquidity to the market. The impact on the Bitcoin price would likely be significant, further driving the positive trend forecasted by Standard Chartered Bank.

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Conclusion

Standard Chartered Bank’s bitcoin price forecast of $100,000 and the expectation of spot bitcoin ETFs have profound implications for the Bitcoin space. The bank’s optimism regarding the timing of the price increase indicates a bullish outlook for the cryptocurrency market. The combination of Bitcoin’s dominance, token hoarding by miners, rising overall market cap, and the upcoming halving creates a favorable environment for price appreciation.

The potential introduction of spot bitcoin ETFs adds another layer of excitement and anticipation. If approved, these ETFs could attract a significant amount of capital into the bitcoin market, further driving up the price. The increased interest and mainstream adoption of bitcoin as a legitimate asset class are positive developments for the entire cryptocurrency ecosystem.

As the cryptocurrency market continues to evolve and mature, it is essential for investors to stay informed and educated about the latest developments. Standard Chartered Bank’s forecast and the expectation of spot bitcoin ETFs highlight the potential for significant price appreciation and increased interest in the Bitcoin space. Whether these predictions come to fruition remains to be seen, but one thing is clear: the cryptocurrency market is attracting attention and gaining momentum.

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