Standard Chartered, a global banking and financial services company, has predicted that the price of Bitcoin, the world’s top cryptocurrency, could reach $100,000 by the end of 2024. This optimistic forecast comes as Bitcoin has been on a rally this year, surpassing $30,000 in April for the first time in ten months. It represents a partial recovery from the losses suffered by the crypto sector in 2022, when trillions of dollars were wiped from the market due to central banks hiking interest rates and several crypto firms collapsing.

Geoff Kendrick, the head of digital assets research at Standard Chartered, cited various factors that could contribute to Bitcoin’s potential for growth. He pointed to recent turmoil in the banking sector, which could drive investors towards cryptocurrencies as an alternative investment. Additionally, Kendrick mentioned the stabilizing of risk assets as the U.S. Federal Reserve ends its rate-hiking cycle, which could create a more favorable environment for Bitcoin and other cryptocurrencies. Lastly, he noted the improved profitability of crypto mining, which could attract more miners to participate in the network and potentially drive up the price of Bitcoin.

“While sources of uncertainty remain, we think the pathway to the $100,000 level is becoming clearer,” Kendrick wrote in a note.

Bitcoin has faced periods of volatility in the past, often referred to as “crypto winters,” where the price experienced significant declines. However, Kendrick’s prediction suggests that Bitcoin may have emerged from its most recent crypto winter and could be on a trajectory towards a new all-time high.

The recent surge in Bitcoin’s price has drawn attention from investors and market observers alike. Some see it as a sign of renewed bullish sentiment in the crypto market, while others remain cautious due to the inherent risks and uncertainties associated with cryptocurrencies. Nevertheless, Standard Chartered’s prediction adds to the growing optimism surrounding Bitcoin’s potential for further price appreciation.

As with any investment, there are risks associated with Bitcoin and other cryptocurrencies. The regulatory environment surrounding cryptocurrencies is still evolving, with some countries imposing stricter regulations while others remain more permissive. Additionally, the lack of intrinsic value and the high level of volatility make cryptocurrencies a speculative investment, susceptible to sudden price swings.

Despite these risks, many investors and institutions are increasingly showing interest in Bitcoin and other cryptocurrencies as part of their investment strategies. Some view cryptocurrencies as a hedge against inflation and a potential store of value in times of economic uncertainty. Additionally, the growing adoption of cryptocurrencies by major corporations and financial institutions has added to their legitimacy as an asset class.

Standard Chartered’s prediction of Bitcoin reaching $100,000 by the end of 2024 is not the only optimistic forecast for the cryptocurrency. Other analysts and market observers have also made similar predictions, citing factors such as increased institutional adoption, growing mainstream acceptance, and limited supply as potential drivers of Bitcoin’s price growth.

In conclusion Standard Chartered’s prediction that Bitcoin could reach $100,000 by the end of 2024 reflects the growing optimism surrounding the cryptocurrency’s potential for price appreciation. Factors such as turmoil in the banking sector, stabilization of risk assets, and improved profitability of crypto mining are cited as potential drivers for Bitcoin’s growth. However, it’s important to remember that investing in cryptocurrencies carries risks and uncertainties, and regulatory environments are still evolving.