As the crypto market slowly recovers, analysts are trying to predict the future price of bitcoin (BTC). The cryptocurrency’s price has been volatile in recent years, and its value has been the subject of debate among investors and financial experts.
However, some analysts predict that BTC will continue to rise in the long term.
Standard Chartered Analysts’ Prediction
Standard Chartered analyst firm predicts that BTC will increase by more than 200% in the next 12 months. It expects the cryptocurrency to reach $100,000 in that period.
The report cites the correlation between the Nasdaq and BTC, suggesting that BTC should trade better when risk assets are recovering across the board.
Bloomberg Intelligence Report
A Bloomberg Intelligence report also indicates that the flagship cryptocurrency may reach the $50,000 price. The report cites a CCData analyst who predicts that the price of Bitcoin could even surpass the $67,000 barrier.
The report suggests that if the FTX collapse was indeed the bottom of this cycle, then history would suggest that there are around 350 days of ‘accumulation’ before we see characteristic post-breakout price action.
Factors Influencing the Price of BTC
The optimistic forecasts for the bitcoin price are based on several factors. Firstly, analysts believe that BTC is a good alternative if the banking crisis continues to worsen. For instance, First Republic Bank announced on Monday that it had lost more than $100 billion in deposits.
There are fears that the bank may soon file for bankruptcy. Historically, bitcoin has been a good safe haven when banks collapse.
Secondly, there is hope that the cryptocurrency will benefit from a possible change in monetary policy by the U.S. Federal Reserve (Fed). Analysts believe the Fed is nearing the end of the current cycle of rate hikes as the likelihood of a recession increases.
Typically, bitcoin falls when the Fed raises interest rates and rises when rates fall.
Finally, bitcoin maximalists are hopeful that the price of the cryptocurrency will skyrocket ahead of the halving of the mining reward, or halving event, which will take place in 2024.
Conclusion
While there are always uncertainties in the crypto market, the predictions from analysts suggest that the future price of bitcoin (BTC) is likely to rise. This is based on several factors, including its correlation with risk assets, its potential as a safe haven, and a possible change in the U.S. Federal Reserve’s monetary policy.
The upcoming halving event also provides some hope for bitcoin maximalists. It remains to be seen whether these predictions will come true, but investors should keep an eye on the cryptocurrency’s performance in the coming months.
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