Bitcoin Set To Skyrocket To $100,000 By 2024: Analyst Predicts A Decentralized Future

The current stress in the traditional banking sector is favorable for Bitcoin's BTC/USD outperformance, leading to a potential for the largest digital currency to reach $100,000 by the end of 2024, according to a note published by Standard Chartered analyst Geoff Kendrick.

Kendrick also believes that Bitcoin's share of the total digital assets market cap could move into the 50-60% range in the next few months from around 45% currently, CNBC reported.

The collapse of Silicon Valley Bank and other mid-tier U.S. lenders has solidified the case for Bitcoin as a "decentralized, trustless and scarce digital asset," he added.

Kendrick noted that the recent increase in Bitcoin's price from below $20,000 to above $30,000 has dramatically increased the profitability of Bitcoin mining companies.

With the price of BTC well above their estimate of direct costs, Kendrick believes that miners are unlikely to sell many coins, which would be a positive development for the cryptocurrency as miners are a major driving force for the market given the size of their holdings.

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Furthermore, the woes of Circle’s USD Coin USDC/USD and other stablecoins have benefited Bitcoin, as they aim to achieve a 1-to-1 peg to the U.S. dollar.

USDC lost its peg to the dollar after its issuer Circle revealed exposure to Silicon Valley Bank.

The coin has since regained its $1 value, but its total market value has fallen to $30.7 billion from more than $43 billion since March 10 when the bank was placed into receivership by the U.S. government.

Proponents of Bitcoin maintain that it is an asset worth diversifying into in times of economic distress, as the digital currency has a limited supply of 21 million Bitcoin, which should appreciate as demand for alternative assets grows to avoid the effects of high inflation.

While Bitcoin failed this test last year, plunging 65%, it has been climbing recently, up 66% since the start of the year, suggesting a recovery may be on the cards.

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