- The research leader of a reputable financial institution said that BTC would reach the milestone by 2024.
- On-chain data suggests an undervalued condition as another analyst expects the coin to thrive at the next halving.
Bitcoin [BTC] has been on a wild ride in recent months, reaching yearly highs and then falling again. A recent one forecast by Standard Chartered has suggested that the cryptocurrency could be poised for a massive rally by the end of the coming year, with some analysts predicting BTC could reach $100,000.
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BTC: The journey to new highs has already begun
While this may seem like a lofty goal, the company’s digital assets department outlined several factors at play that could drive Bitcoin’s price to new heights.
According to the report shared by Reuters, the multinational financial institution noted that the turbulence in the banking sector can have a positive effect on Bitcoin mining activities.
In addition, Geoff Kendrick, head of digital asset research at the company, pointed out that the US Federal Reserves ending the rate hike may have confirmed the end of the crypto winter. Kendrick stated in support of his position:
“While sources of uncertainty remain, we think the path to the USD 100,000 level is becoming clearer”
Looking at the Network Value to Transactions (NVT) ratio, Glassnode showed that it had left the bottom to a relatively high level. The NVT ratio is the ratio of market capitalization to on-chain volume transferred, indicating sentiment and fair value.
When this metric is high, it means that the network value was faster than the network activity, indicating a bearish sentiment. But when it is low, it means investor sentiment is upbeat. At the time the metric went to press, BTC could be considered undervalued.
Source: Glassnode
Halving the game changer?
On April 23 a Bloomberg report mentioned that the Bitcoin halving was paramount to the asset’s recovery. When Bitcoin undergoes a halving, it means that miner rewards are halved. And historically, this sets the precedent for a bull market.
Jamie Douglas Coutts, an intelligence analyst at Bloomberg, believed that BTC could be valued at $50,000 after the event around April 2024.
Source: Bloomberg
Read Bitcoins [BTC] Price prediction 2023-2024
Noting that Bitcoin was already in preparation mode and agreeing with some of Kendrick’s reasons, Coutts said:
“Bitcoin cycles are declining about 12-18 months prior to the halving and this cycle structure is similar to the previous ones, although many things have changed – while the network is much stronger, Bitcoin has never endured a prolonged severe economic contraction.”
In the meantime, The vibrancy of Bitcoin had fallen to 0.60 at the time of going to press. This measure increases when long-term holders decide to liquidate their positions. But as it fell off its peak, it implied these dedicated sets were willing to HODL.
Source: Glassnode
For now, several analysts expect BTC to continue its course correction phase.