Standard Chartered Bank has reiterated its bitcoin price forecast of $100,000 with more price increases coming sooner than previously expected. In a note published on Tuesday, Standard Chartered head of crypto research and Western emerging markets FX, Geoff Kendrick, wrote that “crypto spring has sprung.”
The analyst explained that bitcoin's unwavering dominance in the cryptocurrency space and increasing hoarding of tokens by miners continues to drive the asset's rise. Bitcoin's share in crypto market capitalization increased from 45% in April to around 50% while its value soared over $10,000. The price increase has sparked renewed interest in the world of cryptocurrencies. Kendrick shared:
"Therefore, going forward, we expect the increase in overall digital asset market capitalization to be a greater driver of BTC price increases than BTC's continued increasing dominance in that market."
As the price of bitcoin increased, miners increasingly held onto their BTC, leading to a sharp decline in sales of mined bitcoin to around 80% in the fourth quarter. The Bitcoin halving that will occur in April will further reduce the supply of new bitcoins. Kendrick noted that historically, bitcoin prices peak 12-18 months after the halving.
The bank initially predicted a bitcoin price of $100,000 in April, stating that the crypto winter was over and anticipating that the price could reach $100,000 by the end of 2024. In July, the bank adjusted its predictions, stating that BTC could reach $120,000 next year while emphasizing that the crypto winter was over.
The Standard Chartered analyst further explained that an unexpected positive development is taking place on the demand side, with the increasing likelihood of bitcoin exchange-traded fund (ETF) approval by the US Securities and Exchange Commission (SEC). Kendrick detailed:
"We now expect more pre-halving price increases than previously, particularly through the earlier-than-expected introduction of US spot ETFs. This suggests there is a risk that the USD 100,000 level could be reached before the end of 2024."
Many analysts expect the SEC to approve several spot bitcoin ETFs next year, including one from Blackrock, the world's largest asset manager. SEC Chairman Gary Gensler recently stated that the securities regulator is considering between eight and 10 spot bitcoin ETF applications.
