Standard Chartered Bank’s head of crypto research, Geoff Kendrick, has predicted rapid Bitcoin gains over the next 12 to 18 months, with the value of Bitcoin hitting the US$100,000 mark by the end of 2024. Kendrick believes that Bitcoin’s recent rises are due to turmoil within the traditional financial sector, fueled by a series of bank failures in the US which saw Swiss investment banking giant Credit Suisse forced into a shotgun merger with rival UBS Group. Bitcoin is seen as a “safe haven” by investors, a trend set to continue and drive confidence in the digital asset class.
Bitcoin’s increase in value also seems to be linked to its use case as a liquid asset and the link to issues in traditional finance (TradFi). Kendrick notes that Bitcoin was introduced following the global financial crisis, when banks were suffering and in need of a trustless liquid asset, which was peer-to-peer and didn’t require intermediaries. Investors are now re-engaging with the asset class and particularly Bitcoin since issues in TradFi remain unresolved.
Kendrick believes Bitcoin will continue to hold its position as the so-called “digital gold” in the medium term, correlating closely to gold, with increasing regulation the key to institutional money entering the crypto space. If Bitcoin starts to increase its share of the mix of Bitcoin and gold, this would lead to lower volatility, which would, in turn, create a positive cycle of medium-term regulation, institutional money, and lower volatility.
As for Bitcoin dominance over altcoins, Kendrick thinks Bitcoin’s recent uptick in dominance will continue to increase in the future due to its liquid asset characteristics in the crypto space. While Bitcoin’s dominance has already risen from around 40% to 45%, Kendrick foresees the possibility of going up to 55% or 60% with the next halving which occurs in April 2024.
Kendrick concludes that before the collapse of Silicon Valley Bank in March, Bitcoin was trading at US$20,000 with mounting concerns around the TradFi sector pushing it to US$30,000. With Bitcoin’s increase in dominance and its share of overall crypto assets, Kendrick predicts that the value of Bitcoin may climb another ten dollars, taking it to around US$40,000, and with increasing market confidence, he anticipates Bitcoin value may hit US$60,000 by the end of 2023.
—–
According to https://finance.yahoo.com/news/bitcoin-rediscovers-mojo-banks-stumble-043000394.html
The material in this article is written on the basis of another article.