Bitcoin (BTC) has been making headlines in recent years, with many analysts predicting that its value could soar to astronomical heights. Standard Chartered, a multinational banking and financial services company, has added its voice to the chorus of optimists, predicting that BTC could reach $100,000 by the end of 2024.
Factors that Could Trigger Bitcoin’s Climb to $100K by End of 2024
Geoff Kendrick, the head of digital assets research at Standard Chartered, cited several factors that could contribute to Bitcoin’s ascent in an interview with Reuters. Here are some of the catalysts that he mentioned as well as some facts we have gathered that could support his statements:
1. Ongoing Banking Turmoil
One of the key factors Kendrick pointed to was the recent turmoil in the banking sector. Many traditional banks have struggled to adapt to the changing landscape of finance, and their customers have increasingly turned to alternative financial services providers.
As a result, Bitcoin and other cryptocurrencies have become increasingly popular among investors seeking new opportunities. With the banking sector in a state of flux, Kendrick believes that Bitcoin’s appeal as a viable alternative to traditional banking will only continue to grow.
2. More Profitability in Bitcoin Mining
Another factor that Kendrick cited was the improved profitability of crypto mining. Bitcoin mining is the process by which new Bitcoins are created and added to the blockchain, the distributed ledger that underpins the cryptocurrency.
In the early days of Bitcoin, mining was relatively easy and profitable. However, as more miners joined the network and the difficulty of mining increased, it became less profitable for individual miners to participate. This led to the rise of large-scale mining operations, which could take advantage of economies of scale to mine Bitcoin more efficiently.
Recently, however, the profitability of mining has been on the rise again. This is due in part to the fact that the price of Bitcoin has been steadily increasing as its demand is rising while its remaining supply is dwindling. To date, around 19 million BTC have already been mined, which leaves only 2 million up for grabs in its 21 million supply.
As the value of Bitcoin rises and its supply is nearing its limit, so does the reward for mining a block of transactions. Additionally, improvements in mining hardware and software have made it easier and more efficient to mine Bitcoin. All of these factors have contributed to a renewed interest in Bitcoin mining, which could help to drive up the cryptocurrency’s value.
3. Crypto Price Movements in Response to the Fed’s Decision
Finally, Kendrick pointed to the stabilization of risk assets as the US Federal Reserve ends its rate-hiking cycle. The Federal Reserve, the central bank of the United States, has been gradually raising interest rates in recent years in an effort to curb inflation and maintain the stability of the economy. However, higher interest rates can also make it more expensive for businesses and consumers to borrow money, which can in turn lead to a slowdown in economic growth.
As the Federal Reserve ends its rate-hiking cycle, the cost of borrowing is expected to stabilize, which could help to support risk assets like Bitcoin.
What Naysayers Think
It’s worth noting that predictions of Bitcoin’s rise to $100,000 by the end of 2024 are not without their detractors. Some analysts argue that the cryptocurrency is overvalued and that its price is likely to fall in the coming years. Others point to the volatile nature of the crypto market, which can be subject to sudden and dramatic swings in value.
Despite these criticisms, there are many reasons to believe that Bitcoin could continue to rise in value in the coming years. The cryptocurrency has already demonstrated its resilience in the face of significant market volatility, and it has shown that it can continue to attract new investors even in the face of regulatory uncertainty and other challenges.
Overall, it’s clear that Bitcoin is a force to be reckoned with in the world of finance based on the recent statements of Standard Chartered. Whether it reaches the lofty heights of $100,000 by the end of 2024 remains to be seen, but one thing is certain: Bitcoin is here to stay. As the financial landscape continues to evolve, it’s likely that we’ll see more and more investors turning to cryptocurrencies as a viable alternative to traditional banking and investment options.
Giancarlo is an economist by profession with a career spanning nearly two decades. His professional journey has seen him assume vital roles in various government and private organizations such as the Department of the Interior and Local Government (DILG), the National Economic and Development Authority (NEDA), Megaworld Corporation, and the China Banking Corporation in the Republic of the Philippines.
In addition to his civic and corporate pursuits, his forward-thinking approach has led him to manage several prominent websites in the banking and finance sector, notably the Australia-based RateChoice, where he immersed himself in the world of emerging financial technologies and where he found particular interest in Bitcoin all the way back to 2013.
Prior to his addition to Blockzeit’s dynamic team, he held an essential role as Project Manager for initiatives encompassing blockchain, stablecoin, mining, special economic zone development, and iGaming. This noteworthy chapter in his career unfolded under the auspices of InPlan Consultancy Services, Inc., the think-tank of IMPERO Consortium Management Corporation headquartered in Manila, Philippines, and Tokyo, Japan. InPlan, led by a distinguished retired Cabinet member of the Philippines, collaborates directly with IMPERO’s core management team, contributing to strategic planning and business development endeavors.