- Bitcoin has rallied more than 70% this year, outperforming most other asset classes, after a dismal 2022.
- Some analysts are predicting this may just be the start of a bigger advance for the most traded cryptocurrency.
- Here is a selection of the latest forecasts and commentary on bitcoin and the broader crypto market from investors, analysts and experts.
After a grim 2022, bitcoin has staged a spectacular comeback this year, surging 73% in a rally that left other asset classes in the dust and defied the biggest banking turmoil since the financial crisis.
Just this week, the number of trades in the original cryptocurrency jumped to an all-time high, adding to signs the token’s rebound is attracting investors amid optimism the so-called crypto winter may finally be ending.
All that’s attracting a lot of attention from market commentators and analysts. Veteran investor Ray Dalio isn’t a big fan of the token and venture capitalist Chamath Palihapitiya recently said “crypto is dead in America.” But others have grown cautiously optimistic about bitcoin’s performance – particularly during periods of financial stress thanks to its decentralized nature.
Here is a roundup of recent predictions and commentary on bitcoin and the broader crypto market from high-profile investors, analysts and other experts.
Geoff Kendrick, Standard Chartered
“We see potential for bitcoin to reach the USD 100,000 level by end-2024, as we believe the much-touted ‘crypto winter’ is finally over,” the bank’s head of research wrote in a note last week.
Multiple factors are favoring the token now, according to Standard Chartered. Expectations that the Federal Reserve’s interest-rate hikes are nearing an end is one – the central bank’s policy tightening had a lot to do with last year’s selloff. The prospect of a quadrennial halving of bitcoin supply in 2024 is also acting as a support.
In addition, bitcoin gained some safe-haven appeal during the recent banking turmoil, thanks to its decentralized nature, and has also gained from the declines of some of its key rival tokens.
“Against this backdrop, bitcoin has benefited from its status as a branded safe haven, a perceived relative store of value and a means of remittance,” Kendrick said. He also recently told Insider that the coin could jump nearly 70% if the US defaults on its debt.
US lawmakers are locked in a standoff over the need to raise the government’s borrowing limits and if they don’t reach an agreement before June, the country could fail to meet some upcoming payment obligations.
Eric Chen, CEO of Injective Labs
The crypto market is unlikely to see a significant impact from the failure this week of First Republic Bank, the fourth US bank shutdown this year, because the event had been a subject of market speculation for weeks, according to Chen.
“The larger concern is whether the regulatory environment in the US will become more hostile towards cryptocurrencies because of this outcome, which could have a more significant impact on the industry as a whole,” he told Insider in emailed comments.
“While the regulatory environment for cryptocurrencies in the US is still uncertain, there is a risk that some banks may face regulatory pressure that forces them to discontinue their involvement with cryptocurrencies, which would have a large impact on both the markets and the industry,” he added.
Dan Raju, CEO of Tradier, fintech and brokerage firm
“While retail investors are a bit pained by the string of bad news surrounding a few players and firms, they still feel optimistic that crypto is an asset class that is here to stay. The recent regional banking crisis and current macro factors are pushing bitcoin higher. The endurance of digital assets over a rough couple of months shows it still ranks high among retail investors,” Raju told Insider in emailed comments.
“Investors are looking for protection from volatile market conditions and these assets, like gold, are quickly emerging as a safe guard against rising prices. Individual and institutional investor interest could continue to push cryptos higher as trust, regulations, and guardrails in the industry incrementally get better. I think we’ll continue to see investors turn to crypto and Bitcoin but with a sense of cautious optimism this time around,” he added.
Matrixport, Bloomberg Intelligence
Crypto financial services firm Matrixport predicted last week that bitcoin will more than double its current price and reach around $65,623 by next April, while Bloomberg Intelligence analyst Jamie Douglas Coutts said he thinks the market has priced in 50% of the expected halving that’s expected next year.
“Bitcoin cycles bottom around 12-18 months prior to the halving and this cycle structure looks similar to the past ones, albeit many things have changed — while the network is vastly stronger, bitcoin has never endured a prolonged severe economic contraction,” Coutts told Bloomberg.
Robert Kiyosaki, famed “Rich Dad Poor Dad” author
“I am an investor not a trader. To me, Gold, Silver, & Bitcoin are real money. To me Cash is trash,” the personal-finance guru said in a tweet last week. Though he previously slammed crypto as speculative play, he now loves the token because of its decentralized qualities.