Bitcoin Could Rise 70% If U.S. Defaults Debt

Standard Chartered analyst Geoff Kendrick says if the U.S. defaults on debt, BTC could rally by 70%.
Kendrick also predicted that BTC would touch $100,000 by 2024 end.

2023 has been a relatively good year for Bitcoin; it almost touched the $31,000 mark for the first time in 11 months. Standard Chartered Bank (SCB) analysts say if the U.S. defaults on debts, the price could rally even higher, profiting Bitcoin investors. Geoff Kendrick, SCB’s head of digital assets research, argued that the crypto winter is over and predicted that Bitcoin could reach $100k by the end of 2024.

Bitcoin Could Rally If U.S. Defaults on Debts

Speaking to the media, Kendrick called the incident where the United States defaulted on debts a “low-probability, high-impact event.” Moreover, this event could cause an almost 70% surge in BTC price and jump by nearly $20,000 up from current levels.

At the start of 2023, BTC price was around $16,500 and went near $31,000, and now hovering at $29,219.19 with a drop of 0.43% in the last 24 hours. The price jumped by 76.14% from the first trading day of this year. Still, the price is 57.53% down from Bitcoin’s all-time high of $68,789, achieved on November 11, 2021. Also, the investors who bought positions then are incurring heavy losses.

Speaking to the media, Kendrick argued that Bitcoin is supposed to trade well even if overall cryptocurrencies, which trade like stocks, fail to meet the mark. Hence, he suggests that the optimal trading procedure is a long position on Bitcoin and a short one on Ethereum, as this mix is likely good in the long run.

On April 24, 2023, Kendrick predicted that Bitcoin would reach $100,000 by 2024 and that the crypto winter was over. He argued that BTC benefited greatly from its status as a “branded safe haven, a perceived relative store of value and means of remittance.” However, he listed certain variables that could fuel the rally to a dream mark.

Bitcoin’s price rallied sharply by almost 47% before correcting slightly when Silicon Valley Bank went under FDIC receivership. The collapse of three major banks between March 8 and 12, 2023, sparked fear of a banking crisis in the U.S.

Meanwhile, the debt situation in the United States became worrisome; on April 26, 2023, the House Republicans barely managed to pass legislation raising the government’s debt ceiling, but they must abide by some spending restrictions. In the coming weeks, they are trying to reach a compromise with President Joe Biden which should allow the nation’s debt to be lifted.

If the U.S. defaulted on its debt this coming summer, it would have severe consequences for America and the world. In March, Treasury Secretary Janet Yellen warned lawmakers that “a default on our debt would trigger an economic and financial catastrophe.” Some believe that situations might come to that point.

But even if the U.S. evades the default tag, many BTC proponents predict high points for Bitcoin. Ark Invests Cathie Wood said in February 2023 to Fortune that BTC could reach around $670,00 in the coming five years, and by 2030 it could pass the $1 Million mark.

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing