Bitcoin is ready for extra value features later this 12 months, even after a latest retreat in costs, in line with Standard Chartered’s high crypto analyst. Geoffrey Kendrick, head of overseas trade analysis, West, and digital belongings analysis at Standard Chartered, stated in a analysis word this week that he sees bitcoin rising to $150,000 per coin, and ether hitting $8,000 by the tip of 2024 — doubling down on a bullish prediction from the financial institution earlier this 12 months. “We think the bad news is already priced in for BTC and ETH, and that positive structural drivers will take over again as negative drivers fade,” Kendrick stated within the April 22 word. “In addition, market positioning is now much cleaner than it was; USD 261mn of leveraged long positions were removed from BTC futures alone on 13 April – the largest daily liquidation since at least October 2023 – in response to Iran’s attack on Israel that day.” Kendrick was referring to the liquidation of speculative bitcoin trades that have been augmented by traders utilizing borrowed money to expand bets on the longer term swings within the value of the cryptocurrency. Bitcoin briefly sank beneath $60,000 final week as merchants reacted to information of an escalating navy battle between Iran and Israel. While the cryptocurrency’s proponents imagine bitcoin to be a hedge towards intervals of financial and geopolitical instability, bitcoin has behaved extra like conventional danger belongings, like equities, lately, as extra institutional traders have piled cash into the asset. In reality, bitcoin’s buying and selling has proven it could typically react to dangerous information extra shortly than fairness merchants because the crypto market runs 24/7, whereas shares and different standard markets commerce solely throughout weekdays. Still, regardless of bitcoin’s losses within the wake of Iran’s latest assault on Israel, Kendrick believes the cryptocurrency has potential to maneuver increased within the coming months and hit a recent file excessive effectively above the $73,797.68 value it hit on March 14. Kendrick stated that the availability shock from bitcoin’s halving — which limits the availability of latest bitcoin issuance to three.125 bitcoins, or about $208,360.31 as of Wednesday, down from 6.25 bitcoins — in addition to the arrival of latest bitcoin exchange-traded funds, that are sucking up billions’ of {dollars} value of the cryptocurrency from exchanges, would help costs towards the tip of 2024. That’s even because the token contends with a litany of different dangerous information, together with a stalling of latest bitcoin ETF inflows within the United States; dampening expectations for approval of an ether spot ETF within the U.S.; a Securities and Exchange Commission lawsuit towards decentralized trade Uniswap; increased U.S. Treasury yields; and escalating tensions within the Middle East. “Yes BTC ETF inflows in the US have stalled, but now we are passed the halving only half as much inflow is needed to cover net new supply, and the global ETF backdrop (UK, HK) is improving. Also, large long liquidations over the past couple of weeks mean that market positioning is a lot cleaner,” Kendrick stated. “As a result, with Middle East tensions easing I think it is time to re-engage in medium-term longs.”
https://www.cnbc.com/2024/04/25/standard-chartered-bitcoin-btc-to-hit-150000-after-halving.html
