Standard Chartered: Bitcoin to jump 70% if America defaults on ‎debt payments

Standard Chartered Bank revealed that it expects the Bitcoin cryptocurrency to achieve a significant increase if the United States defaults on its debt.

Jeff Kendrick, head of forex research at Standard Chartered, described the possibility of a US debt default as a low-probability, high-impact event that could lead to a rise in the price of Bitcoin by about $20,000, an increase of 68%.

According to CNBC, America reached the debt ceiling at $31.4 trillion in January

The bank had previously predicted that the price of Bitcoin would rise to $100,000 by the end of 2024

This is to be expected because Bitcoin has a reputation for performing well in times of turmoil and is often seen as a safe haven, Kendrick told Insider.

However, he ruled out that bitcoin would rise in a straight line in the event that America defaulted, pointing to the possibility that it would decline slightly on the first or second day, or within a week.

He continued: In this case, Bitcoin will decline by about 5 thousand dollars at the beginning, and then it will jump by about 25 thousand dollars.

However, Kendrick does not expect the rest of the cryptocurrencies to enjoy the same performance, as he believes, for example, that Ethereum will trade like stocks and is likely to decline in the event of default.