Bitcoin price prediction: Cryptocurrency tipped to be worth a record $100,000 in just months
The world's largest cryptocurrency, bitcoin has the potential to reach $100,000 by year end
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The world's largest cryptocurrency, Bitcoin has the potential to reach $100,000 by year end, a report claims.
According to a research paper by Standard Chartered Bank the climb to hitting six figures could be driven by a number of factors.
The recent banking-sector crisis has helped to “re-establish bitcoin’s use as a decentralised scarce digital asset,” the bank said in the report on Monday.
“Against this backdrop, bitcoin has benefited from its status as a branded safe haven, a perceived relative store of value and a means of remittance,” analyst Geoff Kendrick added.
According to a research report by Standard Chartered Bank the climb to $100K could be seen by the end of the year
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Since the start of the year, Bitcoin has gained 65 per cent and rose above $30,000 last week for the first time in almost a year.
The report also highlighted that one of the drivers for the price is the broader macro backdrop for risky assets gradually getting better as the Federal Reserve, the central banking system of the United States, nears the end of its strict cycle.
Kendrick said: “While BTC can trade well when risky assets suffer, correlations to the Nasdaq suggest that it should trade better if risky assets improve broadly."
Experts at Standard Chartered expect bitcoin’s share of the entire crypto market capitalisation to jump back to the 50 to 60 per cent range.
According to data from TradingView, the ratio between the market capitalisation of Bitcoin to the market cap of the entire cryptocurrency market is now around 47 per cent.
Which has risen from 40 per cent during the fallout of Silicon Valley Bank in mid-March.
Bitcoin’s upcoming halving – the process whereby the rewards for mining a new block gets halved every four years – is also set to be a positive driver.
Kendrick said: “As we approach the next halving, we expect cyclical drivers to become more constructive, as they have in previous cycles."
Since the start of the year, Bitcoin has gained 65 per cent
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He added that if prices remain well above mining costs ($15,000), miners will likely hold onto what they mine instead of selling.
"This creates price upside, in our view. In addition, with energy prices likely having peaked, the structural profitability backdrop for miners should improve, adding further upside," he wrote.
"While sources of uncertainty remain, we think the pathway to the USD 100,000 level is becoming clearer."