We are about to witness a peculiar moment in the trajectory of Bitcoin: its speed, which measures the frequency with which the cryptocurrency is traded or used in transactions, has reached a historically low level. This phenomenon suggests a change in investor behavior, who now seem inclined to hold Bitcoin as a long-term asset.
In parallel with this trend, Standard Chartered, one of the giants in the banking sector, reaffirms its positive forecast for Bitcoin. The financial institution maintains its estimate that Bitcoin could reach the US$100.000 milestone by the end of 2024. This optimistic projection remains despite the fluctuations and uncertainties that have characterized the cryptocurrency market in the last times.
Standard Chartered maintains bullish forecast for Bitcoin to reach $100.000
Bitfinex analysts highlight a notable contrast between Bitcoin's current speed and the average observed during the last cryptocurrency bear market, between 2018 and 2019. According to them, the reduction in Bitcoin's speed is an indication of a change significant impact on market sentiment, similar to the last bear cycle.
This low velocity, according to Bitfinex, implies that Bitcoin holders are less likely to sell, while buyers are actively seeking new supplies. This behavior by holders and buyers contributed to Bitcoin reaching a new peak of US$38.410 on November 24.
However, the long-term outlook for Bitcoin is reinforced by Standard Chartered's view. Geoff Kendrick, head of FX research at the bank, points out that the approvals of several US-based spot bitcoin ETFs will be the main catalyst for Bitcoin's expected appreciation. Kendrick's team anticipates that these approvals will likely come sooner than expected. Potentially, rallies will occur in the first quarter of 2024, for BTC and ETH, paving the way for greater institutional investment.
Thus, amid these analyzes and predictions, the world's largest cryptocurrency by market capitalization registered an increase of 3,2% in the last 24 hours. At its peak, it traded at US$38.141, according to CoinGecko. This stability reinforces the perception that Bitcoin continues to be a dominant cryptocurrency on the market.