Standard Chartered Predicts Bitcoin to Surge 110% by 2024 End

Standard Chartered, a prominent financial institution, has once again captured the attention of the cryptocurrency community with its bullish predictions for Bitcoin's trajectory in 2024. The bank anticipates that Bitcoin's price will surpass $120,000 in the second quarter of 2024 and reach $200,000 by the end of the year. This prediction follows a significant price surge in December 2023, when Bitcoin breached the $100,000 mark for the first time in history.

The core rationale behind standard Chartered's optimistic outlook is the deteriorating confidence in dollar-denominated assets. Global funds are increasingly shifting away from the dollar and into other currency assets, including Bitcoin. Additionally, several technical indicators suggest a bullish trend for Bitcoin. The bank's prediction for the second quarter represents a potential 25% increase from current prices, with an even more ambitious target of $200,000 by the end of 2024, which would be a 110% increase from current levels.

Geoff Kendrick, a Standard Chartered analyst, highlighted that the U.S. Treasury term premium, a key indicator closely tied to Bitcoin's performance, is at its highest level in 12 years. This premium reflects the additional yield investors demand for holding long-term U.S. Treasuries over short-term ones. Kendrick also noted that major Bitcoin holders, often referred to as "whales," are aggressively accumulating more of the cryptocurrency. One of the largest corporate holders, Strategy, recently purchased 15,355 Bitcoins worth $1.42 billion, at an average price of $92,737 per Bitcoin. This move underscores Strategy's commitment to stabilizing Bitcoin's price and its long-term bullish stance on the cryptocurrency.

Strategy now holds 553,600 Bitcoins, valued at approximately $37.9 billion, making it one of the largest Bitcoin holders globally. The bank also observed that exchange-traded funds (ETFs) have seen a significant inflow of funds, indicating a shift from traditional safe-haven assets like gold to Bitcoin. This trend suggests that investors are increasingly viewing Bitcoin as a new safe-haven asset.

Despite a strong rebound since April 20, Bitcoin's price has remained relatively stable year-to-date, up 51% from a year ago. Kendrick emphasized the importance of recognizing Bitcoin's price patterns, which often involve periods of rapid growth followed by months of consolidation. This makes it crucial for investors to capitalize on these signals, even for an asset that has seen substantial gains in recent years.

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The bullish sentiment is further bolstered by the views of prominent analysts who believe that if the dollar continues to weaken due to declining investor confidence, Bitcoin could serve as a viable alternative to gold as a safe-haven asset. This sentiment is echoed by major investment firms, which have expressed concerns about the dollar's weakening trend due to ongoing trade tensions and economic uncertainties.

The outlook for the dollar remains uncertain, with some analysts predicting further depreciation as global investors lose confidence in U.S. assets. The potential for a U.S. recession is also a significant factor, with trade tensions and economic challenges likely to exacerbate the dollar's decline. Michael Hartnett, a strategy analyst, advised investors to sell the dollar on rallies, warning that the current conditions do not support a sustained uptrend. He expects the dollar's depreciation to continue until the Federal Reserve cuts interest rates, a U.S.-China trade deal is reached, and consumer spending remains robust.