Standard Charter expects Bitcoin to hit $120,000 by the end of 2024

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Standard Chartered raised its bitcoin price forecast after seeing an increase in miner profitability.

The bank now expects the crypto asset to hit a price of $50,000 by the end of 2023, a 65% increase from current prices, and then hit $120,000 by the end of 2024, reported. Bloomberg Monday, July 10.

Geoff Kendrick, head of crypto research and EM FX West at Standard Chartered, said, according to the report, increasing miner profitability will lead to a reduction in the net supply of bitcoin as miners can sell less while maintaining cash inflows.

Increasing miners’ profitability per BTC mined means they can sell less while maintaining cash inflows, reducing the net supply of BTC and driving up BTC prices, Kendrick said, according to the report. .

Although bitcoin hit all-time highs of nearly $69,000 in 2021, Standard Chartered sees more growth potential, according to the report.

The bank raised its forecast for bitcoin from its April forecast that prices would reach $100,000 by the end of next year, according to the report.

Since bitcoin miners can cover their costs by selling fewer bitcoins when prices are high, they can hold onto more bitcoins in anticipation of selling them later at higher prices, reducing availability.

This forecast comes at a turbulent time in the cryptocurrency space.

On June 5, it was reported that cryptocurrency prices had plummeted after the Securities and Exchange Commission (SEC) filed 13 charges against crypto exchange Binance and its founder Changpeng Zhao, alleging that the exchange had committed various violations of securities law.

Bitcoin was among those whose price fell at that time, as it was trading at $25,628 on the afternoon of June 5 after hitting a high of $27,093 earlier in the day.

About a week earlier, on May 30, blockchain analytics provider Nansen became the latest company in the beleaguered crypto sector to cut jobs by cutting staff by 30%.

The company had been rapidly increasing its staff for years, but, as Nansen CEO Alex Svanevik said at the time, the past year has been a brutal one for the crypto industry.

See more in: Bitcoin, Blockchain, crypto-asset, Crypto Mining, cryptocurrency, digital assets, distributed ledger technology, Geoff Kendrick, miner profitability, News, Standard Chartered, What’s Hot

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