Standard Chartered, a leading British bank, has outlined three compelling factors that could propel Bitcoin to the $100,000 milestone by the end of 2024, according to Business Insider. The cryptocurrency juggernaut has already surged by over 120% in the past year, setting new records and garnering widespread attention.
The supporting factors for Standard Charter’s prediction are:
1. Miners’ Accumulation
Geoff Kendrick, Head of Crypto Research at Standard Chartered, points to a significant trend in Bitcoin miners’ behavior. The individuals responsible for securing the network and processing transactions have been accumulating more Bitcoin than they are selling. This accumulation has created a positive supply-demand imbalance, as evidenced by the steady increase in miners’ Bitcoin balances since December 2022. Although a brief dip occurred in late October 2023, the overall trajectory suggests a strengthening market.
2. Halving Event
Another pivotal factor driving Bitcoin’s potential surge is the impending halving event, slated for 2024. Halving occurs approximately every four years and involves cutting the reward for mining a new block in half. This programmed reduction, from 6.25 BTC to 3.75 BTC, makes Bitcoin scarcer and inherently more valuable. Historically, the lead-up to and aftermath of a halving event have resulted in a substantial increase in Bitcoin’s price, further fueling optimism.
3. Spot ETF approval in the US
Standard Chartered’s report highlights the third catalyst: the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. Kendrick anticipates an earlier-than-expected introduction of US spot ETFs, providing a regulated platform for investors to buy and sell Bitcoin directly. This development could trigger a significant demand spike for Bitcoin, potentially hastening its ascent to the coveted $100,000 mark before the close of 2024.
Kendrick emphasizes this point, stating: “We now expect more price upside to materialize before the halving than we previously did, specifically via the earlier-than-expected introduction of US spot ETFs. This suggests a risk that the $100,000 level could be reached before end-2024.”
Supporting Indicators
Standard Chartered’s optimistic outlook aligns with other indicators signaling Bitcoin’s robust momentum. Santiment, an on-chain analytics firm, reports a notable decline in Bitcoin’s supply on exchanges, reaching its lowest level since December 2017. This trend suggests that traders are opting for long-term holdings, reinforcing confidence in Bitcoin’s potential for sustained growth.
Additionally, Santiment notes that Tether whales, significant holders of the USDT stablecoin, have amassed $1.67 billion worth of USDT. Historically, an increase in USDT holdings has correlated inversely with Bitcoin’s price, indicating a potential surge in demand for cryptocurrencies, particularly Bitcoin.
Bitcoin Bulls Aim for a $40,000 Price Tag
Currently, Bitcoin is showing strong price growth as the benchmark cryptocurrency refreshes its $38,460 local top. However, BTC still finds it difficult to record a sustained price move above the $38,000 mark, forming a cliff that could lead to a possible price drop. But in such an event, Bitcoin is likely to find adequate support at my five-week-long trendline.
Regardless, the cryptocurrency could restart its bullish push at any time, given the current volatility in the market. Bulls are also eager to reclaim the $40,000 price tag, and the growing accumulation across the market could spur this move.
BTC Statistics Data
BTC Current Price: $37,850
Market Cap: $722B
BTC Circulating Supply: 19.5M
BTC Total Supply: 21M
Market Ranking: #1
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