Decrypt’s Art, Fashion, and Entertainment Hub.
Bitcoin will hit $100,000 by next year, British multinational bank Standard Chartered has said.
The bank made its first bullish predictions back in April, predicting that the largest digital coin would hit $100,000 by the end of 2024.
In July, its team of analysts projected that Bitcoin could hit $120,000 in the same timeframe.
While the protracted bear market that dominated 2023 is only recently showing signs of thawing, the bank is again saying Bitcoin could hit $100,000—and that a Bitcoin exchange-traded fund (ETF) will be the catalyst.
“We now expect more price upside to materialize before the halving than we previously did, specifically via the earlier-than-expected introduction of U.S. spot ETFs,” a report by the bank said. “This suggests a risk that the $100,000 level could be reached before end-2024.”
The “halving” the bank is referring to is an event where the amount of Bitcoin awarded to miners—those who process transactions and mint new coins—is cut in half.
Standard Charter did not respond to a request for comment from Decrypt.
It’s viewed as a bullish indicator for the asset because it reduces the supply of Bitcoin that miners are able to unload onto the market, in turn pushing up the demand—and price—for the existing coins in circulation.
Standard Chartered previously said this would lead to an increase in price of the biggest digital asset.
But in its latest report, the approval of a spot Bitcoin ETF could lead to quicker appreciation to a higher price. A number of major Wall Street investment firms—including BlackRock—have applied to the U.S. Securities and Exchange Commission for their own Bitcoin ETF.
Such a product would allow traditional investors to get exposure to Bitcoin without worrying about storing or buying the cryptocurrency on an exchange.
And if lots of institutional interest floods the space, the price of the asset will go up, according to some analysts.
Edited by Ryan Ozawa.