Bitcoin, the world’s most well-known cryptocurrency, has been on a wild ride over the past few years, with its price surging to new highs before crashing back down.
Despite this, some experts still believe the asset could record new significant highs in a few years to come. At current market prices, Bitcoin has currently decreased by 60% from its all-time high of $69,000 seen in November 2021.
BTC Could Reach $100,000
According to a note from Standard Chartered’s head of digital assets research, Geoff Kendrick, the “crypto winter” may finally be over, and Bitcoin could reach $100,000 by the end of 2024.
Kendrick attributes this potential surge in Bitcoin’s price to a number of factors. These include recent turmoil in the banking sector, a stabilization of risk assets as the US Federal Reserve ends its rate-hiking cycle, and the improved profitability of crypto mining.
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Kendrick said these factors are making the pathway to the $100,000 level “becoming clearer.” But while Kendrick acknowledges that there are still sources of uncertainty surrounding Bitcoin, he believes that the potential for Bitcoin to reach $100,000 is very real.
This prediction is particularly noteworthy given that Bitcoin’s price has already surged so far this year. It rose above $30,000 in April for the first time in 10 months.
Bitcoin Price Action In The Past 7 Days
Bitcoin has experienced a tumultuous journey in the last week, with its price surging to as high as $30,000 on April 18 to crashing back down below $28,000 over the weekend. Over the past 7 days, Bitcoin has been in a downtrend down by nearly 10% in just a week.
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The asset’s market cap has also lost some value, as it lost over $20 billion from its market capitalization in the last week. Bitcoin currently trades at $27,479 at the time of writing down by 0.6% in the last 24 hours.
Several factors contributed to the initial surge in Bitcoin’s price. This includes the fall of United States dollar dominance and the rising US banking crisis, which prompted several traditional bankers to seek another store of value.
However, the surge was short-lived, and Bitcoin’s price crashed back down in the past seven days. This sudden drop in Bitcoin’s price was likely caused by a combination of profit-taking from investors who had bought in at lower prices last year, and concerns over increased regulatory scrutiny.
Despite this recent volatility, many experts remain bullish on Bitcoin’s long-term prospects. As more and more institutions adopt cryptocurrency and retail investors get involved, it seems that Bitcoin will continue to play a significant role in the financial markets for years to come.
Standard Chartered’s prediction of a $100,000 Bitcoin price by the end of 2024 may seem ambitious. But it is not an isolated forecast.
According to a survey conducted by London-based crypto hedge fund Nickel Digital Asset Management, the majority of professional investors believe that Bitcoin is becoming more mainstream and that this trend is likely to continue in the coming years.
Several other experts including former Coinbase Chief Technology Officer (CTO) Balaji Srinivasan have made similar predictions, suggesting that Bitcoin could go as high as $1 million in the long run.
The Coinbase executive went as far as making a bold bet on the future of Bitcoin, claiming that the cryptocurrency will surge to $1 million by June 17th. This optimistic forecast is attributed to the rapid devaluation of the US dollar.
However, it’s important to remember that cryptocurrency prices are notoriously volatile and difficult to predict. Though Bitcoin’s price has been on an upward trajectory in recent months, it’s entirely possible that it could experience significant pullbacks or corrections in the future.
Featured image from iStock, Chart from TradingView