A Standard Chartered note published Monday predicted Bitcoin’s value could reach $100,000 by 2024. Standard Chartered analyst Geoff Kendrick said the collapse of Silicon Valley Bank and other mid-tier U.S. lenders solidified Bitcoin’s status as a “decentralised, trustless, and scarce digital asset.” “We see potential for Bitcoin (BTC) to reach the USD 100,000 level by end-2024, as we believe the so-called ‘crypto winter’ is finally over,” Kendrick said in the report titled “Bitcoin — Pathway to the USD 100,000 level.” “The current stress in the traditional banking sector is highly conducive to BTC outperformance – and validates the original premise for Bitcoin as a decentralised, trustless and scarce digital asset,” Kendrick added. “Given these advantages, we think BTC’s share of the total digital assets market cap could move into the 50-60% range in the next few months (from around 45% currently).” Bitcoin was trading at $27,601.55 as of 9:40 a.m. ET, according to CoinGecko data. The woes of Circle’s USD Coin and other so-called stablecoins, which aim to achieve a 1-to-1 peg to the U.S. dollar, have benefited Bitcoin, Kendrick said.
USDC lost its dollar peg after its issuer Circle revealed exposure to SVB. CoinGecko data shows that the coin’s market value fell to $30.7 billion from more than $43 billion since Mar. 10, when the U.S. government placed the bank into receivership. This, coupled with the stabilization of risk assets and speculation that the Federal Reserve will ease monetary tightening further, means the “pathway to the USD 100,000 level is becoming clearer,” Kendrick said. Bitcoin supporters believe diversifying into digital currency is wise during hard times. As the theory goes, bitcoin has a limited supply of 21 million bitcoins, meaning it should appreciate as demand for alternative assets grows to avoid the effects of high inflation.
