Standard Chartered Bank's research report declares that the crypto winter has ended and the upcoming bitcoin halving event will be a positive trigger for its price. The report highlights that the world's largest cryptocurrency, BTC, could potentially reach $100,000 by the end of this year. Several factors, such as the recent banking crisis, have helped to re-establish bitcoin's value as a decentralized and scarce digital asset, as mentioned in the report released on Monday.
Analyst Geoff Kendrick stated that amidst the current circumstances, bitcoin has been benefiting from its reputation as a trusted safe haven, a perceived store of value, and a method of remittance.
BTC has surged by 65% since the beginning of this year and accomplished a significant milestone in nearly a year by surpassing $30,000 last week. At present, it is trading at $27,328, representing a decline of 1.2% in the last 24 hours. According to the report, the broader macro environment for high-risk assets has been gradually improving, and this could be one of the drivers for BTC's price to reach $100,000, particularly as the Federal Reserve approaches the conclusion of its tightening cycle. Kendrick further added that while BTC can perform well when high-risk assets decline, its correlation with the Nasdaq indicates that it could perform better if high-risk assets improve broadly.
According to Standard Chartered, the proportion of bitcoin's market capitalization in the entire cryptocurrency market is projected to climb back to the 50-60% range. Presently, the bitcoin dominance rate is around 47%, as per TradingView data. During the mid-March fallout of Silicon Valley Bank, it was approximately 40%. Furthermore, Kendrick mentioned that the upcoming halving event, which occurs every four years and involves reducing the rewards for mining a new block by half, is expected to be a positive influence on bitcoin's value. He stated that they expect cyclical factors to become more favorable, as they have in previous cycles, as the next halving event approaches.