After a long and challenging period, the crypto winter seems to be finally over, and Bitcoin, the world’s largest cryptocurrency, is expected to reach $100,000 by the end of the year, according to a research report by Standard Chartered Bank.
The climb to this new all-time high could be driven by various factors, including the recent banking-sector crisis, which helped re-establish Bitcoin’s use as a decentralized, scarce digital asset.
The report highlighted that Bitcoin has benefited from its status as a branded safe haven, perceived relative store of value, and means of remittance, and it has gained 65% since the start of the year.
It rose above $30,000 last week for the first time in almost a year, and it is currently trading at $27,328, down 1.2% in the past 24 hours.
The broader macro backdrop for risky assets gradually improving as the Federal Reserve nears the end of its tightening cycle could also contribute to Bitcoin’s rise to $100,000, according to Standard Chartered.
While Bitcoin can trade well when risky assets suffer, correlations to the Nasdaq suggest that it should trade better if risky assets improve broadly.
Standard Chartered expects Bitcoin’s share of the entire crypto market capitalization to rise back to the 50-60% range. The Bitcoin dominance rate is now around 47%, according to data from TradingView, and it was around 40% during the fallout of Silicon Valley Bank in mid-March.
Bitcoin’s upcoming halving, which is the process whereby the rewards for mining a new block get halved every four years, is also poised to be a positive driver for Bitcoin’s price.
“As we approach the next halving, we expect cyclical drivers to become more constructive, as they have in previous cycles,” said analyst Geoff Kendrick.
