Bitcoin (BTC/USD) price has moved into a correction phase in the past few days after falling by over 12% from the highest level this month. This decline has also led to a major breakdown in other altcoins like Ethereum, Cardano, Litecoin, Polkadot, XRP, and Chainlink. The total market cap of all cryptocurrencies has dropped from over $1.3 trillion to about $1.1 trillion.
Standard Chartered Bitcoin price prediction
Despite the recent sell-off, some analysts are extremely bullish on Bitcoin prices. In a note, analysts at Standard Chartered wrote that the coin could jump by more than 260% by 2024 and hit the key resistance point at $100,000.
They cited the fact that Bitcoin is now seen as a safe-haven asset after the collapse of several banks like Silicon Valley Bank and Signature. Bitcoin surged during their crash as it became a good alternative to stocks.
The analyst also cited the overall improving macroeconomic backdrop for risky assets as the Fed nears its tightening phase. The Federal Reserve has hiked interest rates from zero in 2022 to between 4.75% and 5% this year. Analysts believe that the bank is nearing the end of its hiking cycle.
Further, as I wrote in this article, the other big catalyst for Bitcoin is halving, which will reduce the rewards paid to miners. Most analysts believe that Bitcoin will do well before that halving as it has done in the past three halvings. The Standard Chartered analyst wrote:
“While BTC can trade well when risky assets suffer, correlations to the Nasdaq suggest that it should trade better if risky assets improve broadly. Given these advantages, we think BTC’s share of the total digital assets market cap could move into the 50-60% range in the next few months.”
He believes that Bitcoin could surge to $100k by 2024. If this happens, it means that Bitcoin will need to rise by about 260% from the current level.
Impact on altcoins
The StanChart analyst is not the only one who is bullish on Bitcoin. On Monday, I wrote that Bloomberg Intelligence believes that BTC could jump to $50,000. Mike Novogratz of Galaxy Digital recently predicted that Bitcoin could retest its all-time high at $67,000.
Therefore, if these predictions are accurate, other altcoins will also do well because of the close correlation that exists. Historically, cryptocurrencies like Ethereum, Ripple, Litecoin, Polkadot, and Binance USD tend to do well when Bitcoin is rising.
We can see this correlation right now since most altcoins have pulled back because of the overall decline in Bitcoin prices.
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