Standard Chartered Analyst Geoff Kendrick Cites Collapse of Mid-Tier US Lenders as Validation for Bitcoin as a Decentralized, Trustless, and Scarce Digital Asset
According to a note published on Monday by Standard Chartered, the value of Bitcoin could reach as high as $100,000 by the end of 2024. This forecast is based on the recent collapse of Silicon Valley Bank and other mid-tier US lenders, which has highlighted Bitcoin as a "decentralized, trustless, and scarce digital asset".
Standard Chartered analyst Geoff Kendrick, who wrote the report titled "Bitcoin — Pathway to the USD 100,000 level," believes that the so-called "crypto winter" is finally over, and that the traditional banking sector's current stress is highly conducive to BTC's outperformance. Kendrick argues that this validates Bitcoin's original premise as a decentralized, trustless, and scarce digital asset.
The note by Standard Chartered is not the first optimistic forecast for Bitcoin. Last year, CNBC interviewed venture capitalists, investors, and analysts about their predictions for the digital currency's performance in 2023. On the bullish end of the spectrum, Draper Associates founder and noted Bitcoin bull Tim Draper said he thought the cryptocurrency could reach $250,000.
On the other hand, Standard Chartered also warned that the cryptocurrency could tumble as low as $5,000 in a list of market surprises for 2023. Nonetheless, some crypto investors believe that the next Bitcoin "halving," which reduces the rewards to Bitcoin miners by 50%, could be a potential catalyst for another rally in the coin's price.
JPMorgan also said in a note on April 5 that a technical change to the Bitcoin blockchain in April 2024, known as its "halving," could boost its price by making it more expensive to produce, thus causing a "positive psychological effect".
In conclusion, Standard Chartered's bullish forecast for Bitcoin's value reaching $100,000 by the end of 2024 is based on recent events that have highlighted Bitcoin's value as a decentralized, trustless, and scarce digital asset. However, as with all forecasts, there are factors that could cause Bitcoin's value to fluctuate, such as the upcoming halving and market surprises.