Bitcoin Dips Below $60k, But Analysts Eye Potential Rise to $100k
Image courtesy of 123rf.com

Bitcoin Dips Below $60k, But Analysts Eye Potential Rise to $100k

Bitcoin's price plummeted to $57,895.76 on July 4, 2024, dropping below $60,000 but despite the current downturn, Standard Chartered Bank maintains a bullish outlook.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Bitcoin’s (BTC) price took a significant hit on July 4, 2024, dropping below $60,000 for the first time in months. The world’s leading cryptocurrency fell to $57,895.76, down 3.82% in 24 hours, with a market cap of $1.14 trillion.

This decline comes amid various factors, including concerns over an impending Mt. Gox payout, U.S. economic uncertainty, and ongoing spot-selling pressure. However, some analysts still believe in the asset’s potential to be priced near $100,000 as early as this November.

Bitcoin Buckles Under Market Pressures and Economic Uncertainty

The cryptocurrency market is bracing for a substantial influx of Bitcoin, with Mt. Gox creditors expected to receive around 142,000 BTC, worth approximately $9 billion, starting in July. This imminent repayment is creating short-term volatility and uncertainty, as investors worry about the market’s ability to absorb this additional supply.

Adding to the market’s woes, Federal Reserve Chair Jerome Powell recently stated that more work is needed to tame inflation. The Fed is now considering only one interest rate cut for the rest of the year, instead of the previously expected two or more. This shift has contributed to a risk-averse sentiment among investors, further weighing on crypto prices.

Bitcoin’s Bullish Forecasts and Political Considerations

Standard Chartered Bank remains bullish on Bitcoin’s future despite the current downturn. Geoffrey Kendrick, the bank’s head of forex and digital assets research, predicts a new all-time high for Bitcoin in August 2024, with a forecasted price of $100,000 by U.S. election day in November. This prediction, however, hinges on Joe Biden remaining in the presidential race.

Kendrick views former President Donald Trump as “bitcoin-positive,” noting a positive correlation between Trump’s electoral odds and Bitcoin’s price.

The analyst reasons that a Trump administration would likely favor regulation and mining. Standard Chartered maintains its year-end 2024 price prediction of $150,000 for Bitcoin, putting the cryptocurrency’s market cap in the $3 trillion club.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.