British multinational bank Standard Chartered expects Bitcoin (BTC) to reach $100,000 in 2024. But what will drive growth?
By the end of the 2022s, many mainstream financial experts believed that Bitcoin and the broader crypto market were doomed. However, a lot has changed in the last 12 months, with Bitcoin up almost 150%.
The crypto spring has begun: Standard Chartered
According to Business Insider, Standard Chartered said in a note that Bitcoin will reach $100,000 by the end of 2024. Geoff Kendrick, head of crypto research at Standard Chartered, believes the following are key drivers that will push Bitcoin to $100,000:
- The accumulation of BTC by Bitcoin miners
- Bitcoin halving
- Approval of a Spot Bitcoin Exchange Traded Fund (ETF)
In fact, the screenshot below shows that Bitcoin miners’ BTC balance has continued to increase since December 2022. However, it is worth noting that miner balances have fallen sharply since the end of October 2023.
Bitcoin balances in the miners’ wallets. Source: Glassnode
In fact, the Bitcoin halving causes a supply shock in BTC circulation. At each halving, the block rewards given to miners are split in half. Specifically, the Bitcoin halving in 2024 will reduce the block reward allocation from 6.25 BTC to 3.75 BTC.
Read more: Bitcoin Halving Cycles and Investment Strategies: What You Should Know
Standard Chartered sees demand for Bitcoin (BTC) increasing.
However, Standard Chartered expects that in 2024, in addition to the supply shock, there will also be a surge in demand with the approval of a spot Bitcoin ETF. Kendrick wrote:
“We now expect there to be more price upside ahead of the halving than before, particularly with the earlier-than-expected launch of US spot ETFs.” This suggests there is a risk that the $100,000 “The mark will be reached before the end of 2024.”
In July, BeInCrypto reported that Standard Chartered predicted that Bitcoin would reach $50,000 by the end of 2023.
However, at the end of November 2023, BTC is around $38,000. The question is whether the flagship crypto asset can post a gain of more than 30% in the final month of the year.
Read more: How to Prepare for a Bitcoin ETF: A Step-by-Step Approach
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