Standard Chartered’s top crypto analyst, Geoffrey Kendrick, believes that despite a recent retreat in prices, Bitcoin is poised for more price gains later this year. Kendrick predicts that Bitcoin could rise to $150,000 per coin and Ethereum could hit $8,000 by the end of 2024, doubling down on a bullish prediction previously made by the bank. He attributes this potential price increase to positive structural drivers taking over as negative drivers fade. Kendrick also pointed out that market positioning has improved, as a significant amount of leveraged long positions were removed from Bitcoin futures in response to geopolitical events.
Bitcoin recently dipped below $60,000 following news of escalating tensions between Iran and Israel. While some view Bitcoin as a hedge against economic and geopolitical instability, it has increasingly behaved more like traditional risk assets due to institutional investor interest. Despite this, Kendrick maintains that Bitcoin has the potential to reach a new record high above $73,797.68, citing factors such as the supply shock from Bitcoin’s halving and the emergence of new Bitcoin exchange-traded funds. These, along with a cleaner market positioning and easing Middle East tensions, could drive Bitcoin’s price higher in the coming months.
While Bitcoin faces challenges such as a stalling of new Bitcoin ETF inflows in the U.S., uncertainties around the approval of an Ether spot ETF, a lawsuit against decentralized exchange Uniswap by the Securities and Exchange Commission, higher U.S. Treasury yields, and escalating tensions in the Middle East, Kendrick remains optimistic about the cryptocurrency’s future price trajectory. He believes that the reduced inflow needed to cover net new supply post-halving, as well as improving global ETF backdrop, could support Bitcoin’s price towards the end of 2024. Additionally, the recent liquidations of long positions have cleaned up market positioning, making it an opportune time to consider medium-term long positions.
The predictions made by Kendrick align with the broader sentiment among Bitcoin proponents who believe in its long-term growth potential. Bitcoin’s resilience in the face of negative news and its ability to rebound from short-term downturns has established it as a viable asset class with strong growth prospects. The increasing adoption of Bitcoin by institutional investors and the broader financial ecosystem enhances its credibility and long-term viability as a digital asset. This growing interest in Bitcoin and other cryptocurrencies as alternative investment options further bolsters the outlook for their future price performance.
As the cryptocurrency market continues to evolve and mature, Bitcoin’s price movements are likely to become more correlated with broader market trends and economic indicators. However, the unique characteristics of Bitcoin, such as its limited supply and decentralized nature, set it apart from traditional assets and contribute to its potential as a store of value and a hedge against inflation. The ongoing developments in the regulatory landscape, such as the approval of Bitcoin ETFs and the integration of cryptocurrencies into mainstream financial institutions, could further drive Bitcoin’s price growth and solidify its position as a key player in the global financial system.
In conclusion, despite the challenges and uncertainties facing the cryptocurrency market, Bitcoin’s long-term prospects remain promising. Standard Chartered’s bullish predictions for Bitcoin and Ethereum reflect a positive outlook on the potential for price gains in the coming years. As institutional interest in cryptocurrencies continues to grow and market dynamics evolve, Bitcoin’s role as a digital asset with significant growth potential is likely to strengthen further. While short-term price fluctuations may occur due to geopolitical events or regulatory developments, the underlying fundamentals of Bitcoin suggest a positive trajectory for its price performance in the medium to long term.
