The confidence of investors in Bitcoin as a ‘safe’ financial asset has been increasing even though they’re facing one banking crisis after another. Standard Chartered Bank recently said that the value of Bitcoin could reach $100 K due to this growing sentiment.
The bank analyst Geoff Kendrick believes that investors are looking at Bitcoin as a safe digital asset that stores value and gives remittances in the long run. Bitcoin crossed the $30,000 price mark almost after a year.
The report by Standard Chartered Bank noted that the BTC trades well when risky assets are in trouble. They gave the recent example of the Federal Reserve’s strict measures that put pressure on the valuation of risky assets. The volatility of the economy itself can be seen as the broader macroeconomic backdrop for this repositioning of Bitcoin as a scarce, decentralized digital asset.
The Standard Chartered Bank expects Bitcoin’s complete market capitalization share to reach its peak value at between 50 to 60 percent on the crypto market. A single digital asset’s unforeseen ability to corner the market has been witnessed in recent times. The bank noted that the market share of Bitcoin rose from 40 to 47 percent in the aftermath of the Silicon Valley Bank collapse.
Geoff Kendrick also wrote about the halving cycle of the BTC which ends every four years. This cycle ensures that rewards for newly-mined blocks get halved every four years. The market responds positively to the cycle every time and he expects investors to do the same during this halving cycle.
