Standard Chartered predicts that Bitcoin could reach US$50k this year and US$120k by the end of 2024
Bitcoin, the world’s largest cryptocurrency, started the year trading below US$16K but has now traded at over US$30K — a nearly 100% gain in value for Bitcoin so far this year. On Monday, Standard Chartered (STAN.L) said that the value of top cryptocurrency could reach US$50,000 this year and US$120,000 by the end of 2024, predicting the recent jump in BTC price could encourage bitcoin “miners” to hoard more of the supply.
Standard Chartered published a US$100,000 end-2024 forecast for bitcoin back in April on the view that the so-called “crypto winter” was over, but one of the bank’s top FX analysts, Geoff Kendrick, said there was now a 20% “upside” to that call, reported Reuters.
“Increased miner profitability per BTC (Bitcoin) mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher,” Geoff said in a report.
The British bank said the rationale for its predicted price rise was that miners who mint the 900 new bitcoins produced each day worldwide would soon need to sell fewer to cover their costs – mostly electricity to power supercomputers.
Geoff estimated that miners have recently sold 100% of their new coins. However, if the price hits US$50,000, they would only sell 20-30%. “It is the equivalent of miners reducing the number of Bitcoins they sell daily to just 180-270 from 900 currently.” He added, “Over a year, that would reduce miner selling from 328,500 to a range of 65,700-98,550 – a reduction in net BTC supply of roughly 250,000 Bitcoins a year.”
What Makes Bitcoin So Appealing?
Bitcoin’s utility lies in its exclusive use as a medium of exchange, store of value, and hedge against inflation. While banks worldwide are printing money, Bitcoin’s limited supply (21 million coins) ensures its value will not be diluted.
Blackrock, Fidelity, and Ark are all fighting to become the first asset manager to launch a Bitcoin ETF. Such a move would make Bitcoin even more accessible to mainstream investors, as the ETF would provide an easy and safe way to invest in Bitcoin without acquiring coins directly.
