When it comes to crypto, we already know that change is the only constant. This rule applies to all digital assets and Bitcoin, the undisputed king of crypto, makes no exception. Bitcoin’s price has been fluctuating since the very beginning and continues to move erratically across the board, making crypto holders feel like they’re walking on thin ice. However, this infamous volatility hasn’t stopped traders and investors from flocking to exchange platforms like Binance and buying Bitcoin, even if the odds didn’t seem to be in their favor.
Despite the instability that has always dominated the crypto space and the latest crypto winter which brought the prices of leading coins crashing down from unprecedented highs, wiping out many investors’ funds and hopes along the way, the majority of people still think that Bitcoin has the ability to bounce back like it did do many times in the past, and lead the next major bull market. And it’s not just the general sentiment fueling this optimistic outlook on Bitcoin’s future as expert predictions also seem to be pointing in this direction.
According to Geoff Kendrick, head of digital assets research at Standard Chartered, a British-based international banking group providing services in consumer, corporate and institutional banking, and treasury services in over 60 markets across the world, Bitcoin’s recovery might be even more spectacular than expected. In a recent note, Kendrick stated that Bitcoin may be well on its way to reaching the $100,000 mark in 2024, although he pointed out that sources of uncertainty are still present.
The head of digital research went on to elaborate on his statement, mentioning that the growth could be supported by a variety of factors, including the ongoing banking crisis, the expectation that the U.S. Federal Reserve might finally press pause on the interest rate hike cycle, and increased effectiveness of the crypto mining process. In other words, one can rest assured that the crypto winter is already behind us, or is it?
Is the crypto winter finally over?
As much as crypto enthusiasts would like this prediction to turn into a reality, one can’t ignore the fact that speculating on future crypto movements is a tricky business. We’re talking about a nascent technology and a market that hasn’t had enough time to fully develop and mature, so there’s no solid ground to make accurate predictions.
However, financial experts and crypto analysts wouldn’t rush to make these types of statements if they didn’t have real motives to think that the crypto winter is coming to an end. As they say, there’s no smoke without fire, and the analogy is quite fitting since temperatures seem to be rising in the crypto sphere. So, let’s take a look at some of the arguments in support of this theory.
It’s no secret to anyone that 2022 has been a disastrous year for Bitcoin and all the other digital assets in the market. Crypto prices suffered a brutal comedown, a few coins collapsed, and several crypto firms went bankrupt and had no choice but to shut down their operations. On top of everything else, the push for tighter crypto regulations and the increasing criticism regarding the negative environmental impact of crypto mining added extra pressure on the market.
But 2023 brought a breath of fresh air to the crypto community after the freezing crypto winter that dominated the better part of 2022. Since the beginning of the year, Bitcoin and many of the existing altcoins have been on a positive trend that shows no signs of stopping. Bitcoin even managed to recover over 70% of its value, hitting the $30,000 threshold for the first time since June 2022. Ethereum, the second-largest crypto by market cap, went on a two-day price rally and briefly topped $2,000 after the Shanghai upgrade was completed, registering a 65% increase since the turn of the year.
Seeing the two leading coins in the crypto market rally up to recover so much of their lost value in the timespan of just a few months is a clear reminder of similar events in the industry’s short but eventful history. It can’t be just a mere coincidence or a lucky strike that both Bitcoin and Ether – and several other smaller coins – are rising in value at the same time. These upward trends can be interpreted as signs of a new bull run approaching.
As for sustainability, the crypto market is slowly but surely getting greener. Developers are looking for solutions to address the energy consumption issue which has been causing waves in the industry for so long. Established projects like Ethereum have already taken major strides in this respect, moving from a proof-of-work consensus mechanism to a proof-of-stake protocol which is much more environmentally friendly.
Another factor that strengthens experts’ belief in the rehabilitation of the crypto industry and the steep approach of a new bull market is the increasing rate of crypto adoption at an individual and institutional level. If the crypto industry were living its last days, there wouldn’t be so many businesses and organizations introducing crypto services for their customers. Statistics clearly show that the number of global crypto users has grown by almost 40% in 2022, the same year when the crypto winter caused prices to plummet and freeze. This can mean only one thing: people still believe in crypto’s potential and are not about to give up on this promising new technology just because the market is going through the expected growing pains.
Whether Bitcoin will be able to break past the $100,000 barrier in 2024 remains to be seen. But at the moment, all signs point to a potential recovery of the crypto market in the months to come, so crypto enthusiasts have real reasons to feel optimistic.