Bitcoin may grow by 70% due to the US government’s actions

The head of cryptocurrency trading research at Standard Chartered has suggested that BTC could jump by about $ 20,000 if the US fails to fulfill its obligations on the national debt.

Jeff Kendrick is convinced that if the US government announces its inability to repay its debt obligations, the BTC $56,536.26 Bitcoin -2.88% Market capitalization $1.11 trillion VOL. 24 hours $4.57 billion rate will show a 70% increase. The analyst called a possible default an unlikely event that could cause serious consequences. Therefore, investors who consider bitcoin a «safe haven» will pour their money into the flagship cryptocurrency when the market falls.

More and more investors see bitcoin as a means of preserving capital. «The recent crisis in the US banking sector has helped to restore the use of bitcoin as a decentralized, reliable, and scarce digital asset ,» Jeff Kendrick emphasized.

If a default is declared, the surge in bitcoin’s price will not start immediately, the analyst explained. The jump will be preceded by a drop of about $ 5,000 in the BTC, after which it will rise by $ 25,000. While bitcoin will follow a bullish trend, the rate of other cryptocurrencies, including ethereum, may decline.

«In this case, the best trading deals would be long positions for BTC and shorts for ETH. This is akind of mix ,» Kendrick said.

Recently, Standard Chartered analysts predicted the end of the crypto winter, which means that bitcoin has a chance to grow to $ 100,000 by the end of 2024. This prediction is radically different from the one made by analysts at the end of last year. In December, Standard Chartered experts warned that in 2023, the bitcoin rate could fall to $ 5,000.