Miguel Lopez Standard Chartered, a prominent banking institution, has adjusted its bitcoin price projection. The head of crypto research at the bank now anticipates bitcoin to reach $50,000 by the end of this year and surge to $120,000 the following year. The analyst explained that increased profitability for bitcoin miners allows them to sell fewer coins while still maintaining cash inflows. Consequently, this reduces the net supply of BTC and drives its prices higher.
Standard Chartered Boosts Bitcoin Price Prediction
Geoff Kendrick, the head of Standard Chartered’s crypto research team and emerging markets FX (West), has raised his forecast for bitcoin’s price. Standard Chartered, with its global headquarters in London, England, operates in more than 57 markets worldwide, boasting total assets of $821 billion as of the end of the first quarter of 2023.
In April, Kendrick announced the end of the crypto winter and predicted that bitcoin’s price could reach $100,000. Now, the Standard Chartered analyst expects the price of the leading cryptocurrency to reach $50,000 this year and $120,000 by the close of 2024. He believes that this surge in price could incentivize bitcoin miners to retain more of the cryptocurrency’s supply.
“Miners not only maintain the Bitcoin ledger but also influence the net supply of newly mined BTC. Specifically, based on their profitability, miners determine the portion of new BTC supply that enters the market,” Kendrick explained. He added:
“Higher profitability per BTC mined allows miners to sell fewer coins while still receiving cash inflows, reducing the net BTC supply and driving BTC prices higher.”
Kendrick noted that his projected increase in BTC price stems from the fact that global miners, who produce 900 new bitcoins daily, would soon need to sell fewer coins to cover their costs, including electricity required for mining operations.
According to Kendrick, bitcoin miners have been selling 100% of their newly mined coins. However, if the price of bitcoin reaches $50,000, he expects them to only sell 20%-30% of their output. The Standard Chartered analyst elaborated:
“This would be equivalent to miners reducing their daily bitcoin sales to just 180-270 from the current 900.”
“Over the course of a year, this would reduce miner sales from 328,500 to a range of 65,700-98,550, resulting in a net reduction of approximately 250,000 bitcoins per year,” he added.
In June 2021, Standard Chartered launched a cryptocurrency exchange and brokerage service. The bank’s CEO, Bill Winters, previously expressed his belief that the adoption of digital currencies is “inevitable.”
As of the time of writing, bitcoin is trading at $30,506, marking an 18% increase over the past 30 days and an 84% increase year-to-date. Last week, crypto firm Matrixpoint predicted that bitcoin would reach $125,000 by the end of 2024. Meanwhile, venture capitalist Tim Draper has maintained his stance that BTC will reach $250,000 in approximately two years.
Do you agree with Standard Chartered’s prediction that the price of bitcoin will reach $120,000 by the end of 2024? Share your thoughts in the comments section below.
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Frequently Asked Questions (FAQs) about Bitcoin price forecast
Q: What is the updated Bitcoin price forecast by Standard Chartered?
A: Standard Chartered has raised its Bitcoin price forecast. The head of crypto research at the bank expects Bitcoin to reach $50,000 this year and $120,000 the following year.
Q: What is the reason behind the projected increase in Bitcoin’s price?
A: According to Standard Chartered’s analyst, increased profitability for Bitcoin miners allows them to sell fewer coins while still maintaining cash inflows. This reduction in net BTC supply is expected to push Bitcoin prices higher.
Q: How does Standard Chartered expect Bitcoin miners to impact the supply of newly mined BTC?
A: Standard Chartered predicts that as Bitcoin’s price rises, miners will sell only 20%-30% of their output instead of the current 100%. This would result in a reduction in net BTC supply of around 250,000 bitcoins per year.
Q: Has Standard Chartered launched any cryptocurrency services?
A: Yes, in June 2021, Standard Chartered launched a cryptocurrency exchange and brokerage service.
Q: What is the current trading price of Bitcoin?
A: At the time of writing, Bitcoin is trading at $30,506, with an 18% increase over the past 30 days and an 84% increase year-to-date.
Q: Are there other price predictions for Bitcoin?
A: Yes, last week, crypto firm Matrixpoint predicted that Bitcoin would reach $125,000 by the end of 2024, while venture capitalist Tim Draper maintains his prediction of BTC hitting $250,000 in about two years.
