The most popular cryptocurrency in the worldBitcoin (BTC), could reach a price of USD 100,000 in its next bullish cycle, according to a report published by Standard Chartered Bank, one of the largest international banks in the world.
This report, prepared by analyst Geoff Kendrick, highlights several key factors that could drive the growth of the price of Bitcoin.
First of all, the recent banking crisis has increased interest in Bitcoin as a digital asset scarce and decentralized, which has favored its use as a safe haven, a means of remittances and a store of value.
Furthermore, Kendrick also points out that gradually improving macroeconomic backdrop for risky assets could favor Bitcoin. As the Federal Reserve nears the end of its tightening cycle, correlations with the Nasdaq suggest that Bitcoin would outperform if risky assets improve overall.
In this sense, Standard Chartered expects Bitcoin’s share of total cryptocurrency market capitalization to rise back to the 50-60% range. Currently, the Bitcoin dominance rate sits around 47%.
Bitcoin’s upcoming halving event, in which the rewards for mining a new block are halved every four years, could also be a positive driver for the price of the cryptocurrency, according to Kendrick.
As the next halving approaches, cyclical factors are likely to become more constructive, just as they have in previous cycles.
Standard Chartered Bank is a multinational financial institution headquartered in London, United Kingdom, with an extensive presence in Africa, Asia, Europe and the Middle East. It offers personal, corporate and investment banking services to its clients around the world.
In recent years, Standard Chartered has shown increasing interest in the Bitcoin and cryptocurrency sector.
This new prediction from the bank coincides with the bullish trend Bitcoin has experienced in recent months, where it has gained 65% in value since the start of the year and topped $30,000 for the first time in almost a year.
Why bitcoin became more popular than other cryptocurrencies
Since its creation in 2009, Bitcoin has been the best known and most popular cryptocurrency in the cryptocurrency market. However, why did Bitcoin become more popular than other cryptocurrencies?
There are several reasons that explain this trend. First of all, Bitcoin was the first cryptocurrency to be created and its success in the early years was fueled by its innovative blockchain technology and decentralized nature.
Also, unlike other cryptocurrencies, the maximum amount of Bitcoin that can be mined is limited, giving it intrinsic value over the long term.
Another reason for Bitcoin’s popularity is its use as a form of payment in a wide variety of merchants, both online and in physical stores, which has allowed for greater consumer adoption. This has been driven by its ease of use, security and speed of transactions.
On the other hand, the growing demand for Bitcoin is also largely due to its value as an investment. As the price of Bitcoin has been increasing, many investors have seen in it an opportunity for long-term profits.
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