Article Summary
- The crypto market experienced a sharp collapse on Wednesday night, with the broader market plunging 6% in an hour, wiping out the gains of the previous 24 hours.
- Standard Chartered Bank predicts that Bitcoin could reach $100,000 by the end of the year, citing several factors, including the recent crisis in the banking sector and the macroeconomic environment for riskier assets.
- Financial expert Jeff Kendrick also anticipates that Bitcoin will benefit from the impending halving and from the association between Bitcoin and the Nasdaq, indicating that it will trade more favorably.
The crypto market collapsed Wednesday night, wiping out the last 24 hours of gains in less than an hour.
Data from Coinmarketcap, which tracks the performance of the broader crypto market, plunged 6% in an hour and is currently trading 2% lower than it was 24 hours ago. Bitcoin, the largest cryptocurrency in the market valuation, recently traded at around $28,900, surpassing the $30K all-time high early Wednesday. BTC fell to $27,264 later in the day.
In the last 24 hours, 79,038 traders were liquidated, reaching a total liquidation of $352.78 million.
Bitcoin prices fell from their highs on April 14th. After the recovery, it started a sharp rise and is currently trading within the $28,500 resistance area. If this catalyzes a breakout, BTC’s rally could accelerate well above $31,800. Ether recently dropped slightly to trade at $1,855. The market value of the second-largest cryptocurrency surged to $1,984 before falling to $1,789 on Wednesday afternoon. This is the lowest price since early April.
Crypto winter is finally over, and Bitcoin (BTC), the world’s largest cryptocurrency, could reach $100,000 by the end of the year, according to a research report from Standard Chartered Bank.
According to Standard Chartered, Bitcoin’s market valuation will increase to between 50% and 60%. Data from Coinmarketcap indicates that the most popular crypto asset presently has a 47% market share. It was around 40% at the time of the Silicon Valley Bank failure in mid-March. The surge to $100,000 could be driven by several factors, including the recent crisis in the banking sector that helped “restore the use of Bitcoin as a decentralized scarce digital asset.” The bank said in a report on Monday.
Jeff Kendrick, a financial expert, also anticipated that Bitcoin has profited from its reputation as a remittance method, a relative store of value, and a haven. Bitcoin has increased 67% year-to-date and last week crossed the $30,000 mark for the first time in almost a year.
The research also mentions that the larger macroeconomic environment for riskier assets, which is gradually getting better as the Federal Reserve gets closer to the end of its tightening cycle, is one of the factors contributing to the $100,000 price. Kendrick further highlighted that Bitcoin will benefit from the impending halving (a process in which the reward for mining a new block is halved every four years) as well. “We anticipate the cyclical factors to be more beneficial as we get closer, just like in previous cycles,” he said.
According to Kendrick, Bitcoin may do well when risky assets are underperforming, but the association between Bitcoin and the Nasdaq indicates that this is not always the case. It implies that BTC will trade more favorably.
