Bitcoin (BTC), the world’s largest cryptocurrency, has made a strong comeback in 2022, and it appears that the crypto winter is finally over.
According to a research report by Standard Chartered Bank, Bitcoin has the potential to reach $100,000 by the end of the year.
The report highlights that the recent banking sector crisis has helped to “re-establish bitcoin’s use as a decentralized scarce digital asset.”
This has contributed to Bitcoin’s status as a branded safe haven and a means of remittance, making it a perceived relative store of value.
Bitcoin has already gained 65% since the start of the year, and it rose above $30,000 last week for the first time in almost a year.
Although it was recently trading at $27,328, down 1.2% in the past 24 hours, the report suggests that the climb to $100,000 could be driven by a number of factors.
One of the drivers for the price to reach $100,000 is the broader macro backdrop for risky assets gradually improving as the Federal Reserve nears the end of its tightening cycle.
Standard Chartered expects Bitcoin’s share of the entire crypto market capitalization to rise back to the 50-60% range. Currently, Bitcoin’s dominance rate is around 47%.
The report also notes that Bitcoin’s upcoming halving could be a positive driver for the cryptocurrency. This is the process whereby the rewards for mining a new block get halved every four years.
“As we approach the next halving, we expect cyclical drivers to become more constructive, as they have in previous cycles,” the report states.