Bitcoin, the world’s largest cryptocurrency, is poised to reach $100,000 by the end of the year, according to a research report by Standard Chartered Bank.
The report suggests that the recent banking-sector crisis helped to re-establish bitcoin’s use as a decentralized scarce digital asset, News About Nigeria reports.
Analyst Geoff Kendrick wrote, “Against this backdrop, bitcoin has benefited from its status as a branded safe haven, a perceived relative store of value and a means of remittance.”
Kendrick also noted that the broader macro backdrop for risky assets is gradually improving as the Federal Reserve nears the end of its tightening cycle.
Furthermore, the report highlighted the upcoming bitcoin halving as a positive driver for the price. The halving is the process whereby the rewards for mining a new block get halved every four years.
Kendrick wrote, “As we approach the next halving, we expect cyclical drivers to become more constructive, as they have in previous cycles.” Standard Chartered Bank expects bitcoin’s share of the entire crypto market capitalization to rise back to the 50-60% range, as the dominance rate is now around 47%.
The report marks the end of the crypto winter and notes that bitcoin has gained 65% since the start of the year and recently rose above $30,000 for the first time in almost a year. Currently, trading at $27,628 at the time of writing.
Kendrick believes that the climb to $100,000 could be driven by a number of factors, including bitcoin’s status as a branded safe haven, a perceived relative store of value, and a means of remittance.
Overall, the report suggests that the future is looking bright for bitcoin and that it could potentially reach new heights in the coming months. Investors and crypto enthusiasts alike will be closely watching to see if the predictions come to fruition, and if the world’s largest cryptocurrency can reach the coveted $100,000 mark by the end of the year.