Bitcoin is set to post further price gains later this year, even after a recent price decline, according to a senior cryptocurrency analyst at Standard Chartered Bank. Jeffrey Kendrick, head of foreign exchange, western and digital assets research at Standard Chartered Bank, said in a research note this week that he expects bitcoin to rise to $150,000 per coin and ethereum to reach $8,000 by the end of 2024 — doubling year-on-year. Bullish forecasts from the bank earlier this year. “We believe the bad news has already been priced in for Bitcoin and Ethereum, and that the positive structural drivers will take over again as the negative drivers fade,” Kendrick said in an April 22 note. “In addition, the market situation is now much cleaner than it was as $261 million of leveraged long positions were removed from Bitcoin futures alone on April 13 – the largest daily liquidation since at least October 2023 – in response to the attack. Iran over Israel that day.” Kendrick was referring to the liquidation of Bitcoin speculative trades fueled by investors using borrowed money to make larger bets on future fluctuations in the cryptocurrency’s price. Bitcoin temporarily fell below $60,000 last week, as traders reacted to news of the escalating military conflict between Iran and Israel. While cryptocurrency proponents believe bitcoin is a hedge against periods of economic and geopolitical instability, bitcoin has behaved more like traditional risk assets, such as stocks, in recent years, as more institutional investors have piled money into the asset. In fact, Bitcoin trading has shown that it often reacts to bad news more quickly than stock traders, as the cryptocurrency market operates 24/7, while stocks and other traditional markets trade only during the week. However, despite Bitcoin's losses following the recent Iranian attack on Israel, Kendrick believes the cryptocurrency has the potential to rise in the coming months to reach a new record high well above the price it reached on March 14 of $73,797.68. A shock from the bitcoin halving — which limits the supply of new bitcoin issuance to 3,125 bitcoins, or about $208,360.31 as of Wednesday, down from 6.25 bitcoins — as well as the arrival of new bitcoin exchange-traded funds, which are absorbing billions of dollars. The value of the cryptocurrency from exchanges should support prices at the end of 2024. This is even as the currency faces a series of other bad news, including the halt of new bitcoin ETF inflows in the United States; dampening expectations of approval of an Ethereum exchange-traded fund in the US; SEC lawsuit against decentralized exchange Uniswap; The rise in US Treasury yields; And escalating tensions in the Middle East. “Yes, US Bitcoin ETF flows have stopped, but we are now only half of the flow needed to cover the net new supply, and the global (UK and Hong Kong) ETF backdrop is improving. Ends Kendrick said that the past two weeks have meant that the market situation has become much cleaner. “As a result, with tensions in the Middle East easing, I think it is time to re-engage in medium-term long positions.”
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Bitcoin (BTC) will reach $150,000 after the halving
