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Investing.com – As the Fed resumed its rise yesterday thanks to dovish comments from the Fed, after a short pause, Standard Chartered (LON:) confirmed its ambitious goal of BTC reaching $100,000 by the end of next year.
In a note published on Tuesday, analysts at Standard Chartered declared that “the spring of cryptocurrencies has arrived” and reiterated a forecast made for the first time in April, estimating that the crypto will reach a price of six figures by the end of 2024.
This would represent an increase of more than 160% compared to the current price, after Bitcoin has already gained around 130% since the start of 2023.
To explain their prediction, the analysts pointed to the continued dominance of the crypto space and the increased hoarding of tokens by miners. It is also interesting to point out that Bitcoin now represents nearly 52% of the total capitalization of the crypto market, compared to approximately 45% when Standard Chartered first formulated its forecast.
However, they warned that “going forward, we therefore expect the increase in the overall capitalization of the digital asset market to be a greater driver of the rise in the price of BTC than a continued increase in the dominance of BTC within the space”.
They also stressed that the new supply of bitcoin will be reduced by the halving next April, an event which occurs approximately every 4 years and which halves the reward for bitcoin miners, specifying that as a general rule, the Prices peak 12 to 18 months after this event.
Furthermore, the demand side of the equation also offers a positive outlook, given the increasing likelihood that bitcoin spot ETFs will be approved for US markets.
“We now expect higher prices to materialize more ahead of the halving than we did previously, particularly thanks to the faster-than-expected introduction of spot ETFs in the United States,” the bank wrote, which states that “this suggests a risk that the level of 100,000 USD will be reached before the end of 2024”.
Finally, falling Treasury yields are another positive factor for Bitcoin cited by Standard Chartered, given that cryptocurrencies tend to be traded on a very long-term basis, and knowing that the 30-year yield has fallen at 4.60%, after reaching record levels of more than 5% last month.