Jeff Kendrick , Director of Digital Asset Research at Standard Chartered, said in a note that Bitcoin could benefit from factors including the recent turmoil in the banking sector , the stability of risk assets as the US Federal Reserve reaches the end of the interest rate hike cycle, and improving profits from cryptocurrency mining.
Kendrick stated that although there are still uncertainties, they have a clearer understanding of the path leading to $100,000.
During Monday’s trading, Bitcoin experienced a decline in the depth of its losses for the second day in a row, recording the lowest level in four weeks, amid a negative atmosphere dominating the encrypted assets market, especially with the strong possibilities of continuing to raise interest rates for major central banks .
The US Federal Reserve and the European Central Bank will meet in early May, and policymakers are expected to raise US interest rates by another 25 basis points at the Federal Open Market Committee meeting next week. Expectations also indicate that the European Central Bank will raise interest rates by a quarter of a point. With weaker odds of a 50 basis point hike.
Bitcoin has risen in value this year, rising above $30,000 in April for the first time in ten months. These gains represent a partial recovery after the cryptocurrency sector lost trillions of dollars in 2022, when central banks raised interest rates and a group of companies operating in this field collapsed.
In November of 2020, a Citigroup analyst said that Bitcoin could jump to $318,000 by the end of 2022, but it ended last year down about 65 percent to $16,500.
