Standard Chartered has reaffirmed its prediction that the price of Bitcoin (BTC) will reach $100,000 by November 2024. This forecast is supported by factors such as ETF inflows, the Bitcoin halving, changes in regulations, and on-chain metrics indicating increased adoption.
The financial powerhouse Standard Chartered has thrown its weight behind the $100,000 price target for Bitcoin (BTC) before the end of 2024. The asset manager, with assets worth $820 billion, is of the opinion that BTC could hit a new all-time high in August before surging past $100,000 by November.
Bitcoin’s current all-time high is at $73,000, which was achieved in March, shortly after the launch of the first Bitcoin spot ETF. The introduction of this investment product led to a rapid influx of billions of dollars, driving up demand for Bitcoin. This, in combination with the excitement surrounding the April Bitcoin halving, historically results in a price surge.
The success of the halving is significant, as BTC has historically rallied months after the event to reach a new all-time high. At the time of writing, BTC is being traded for $60,420 after experiencing a 2.3% drop in the last 24 hours. There were concerns that Bitcoin might drop below this support level, potentially falling to $50,000 due to intense selling pressure from various sources such as miners’ holdings, German authorities, the U.S. government, and net ETF outflows.
However, experts expect a price reversal in the near future as adoption of the asset continues to rise. Institutional investors have taken the lead, especially after the approval of the ETF signaled a change in regulatory policy. The U.S. presidential race has also played a role in influencing Bitcoin prices.
Presidential candidate Donald Trump has already shown interest in the cryptocurrency industry, promising support if he wins the race. A Trump victory could lead to favorable crypto policies, promoting the industry’s growth. As a result, the Winklevoss brothers and Jesse Powell, the founders of the Gemini crypto exchange and Kraken, respectively, have donated to Trump’s campaign.
Analysts at Standard Chartered emphasized in a recent report that Bitcoin reaching $100,000 depends on Joe Biden remaining the challenger to Trump. Following a recent presidential debate where Biden performed poorly and Trump emerged as the winner, there is speculation that Biden might lose to Trump in the polls. However, it is also rumored that the Democrats could introduce a new candidate.
Bank analyst Kendrick stated that if a credible Democratic candidate replaces Biden, “Bitcoin prices will remain soft.” However, if Biden continues to be in the race, it presents “a fantastic buying opportunity” for Bitcoin.
The bank has also highlighted August as a crucial month, as Ohio law requires presidential candidates to be registered by this date. Therefore, if Biden is still the Democratic nominee on August 4, he will likely remain in the race until the first week of November.
The bank believes that a Trump win, supported by a Biden ticket, will strengthen regulation and mining. However, if Biden drops out of the race in late July, it could pose a risk to the $50,000 price target.
In conclusion, Standard Chartered predicts that Bitcoin could soar to $100,000 by November, driven by election dynamics and recent market trends. With BTC reaching $73,000 earlier this year, this bullish forecast suggests the potential for a significant rally.