Standard Chartered predicts that Bitcoin’s price will be driven by miners who are hoarding their coins, which will reduce the supply of Bitcoin in circulation.
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Standard Chartered Forecasts 300% Bitcoin Price Increase
Standard Chartered predicted in April that Bitcoin might reach $120,000 by the end of 2024, citing the banking sector crisis as one of the reasons for its positive outlook.
Standard Chartered’s Geoff Kendrick said that there is a 20% chance that Bitcoin could reach $120,000 by the end of 2024, as the bank’s initial prediction of $100,000 looks increasingly likely.
According to Kendrick, the current increase in Bitcoin’s price is due to a supply imbalance. Miners are selling less Bitcoin as they spend more energy on network upkeep. This reduces the market supply of Bitcoin, forcing demand to surpass supply.
The rising profitability of Bitcoin mining could lead to miners holding onto more of their coins, reducing the supply of Bitcoin on the market and driving up prices.
Miners are presently selling all of their newly mined Bitcoin since the price is not high enough, according to Kendrick. He estimates that if Bitcoin reaches $50,000, they will only sell 20-30% of their newly produced Bitcoin.
Standard Chartered’s Earlier Prediction
In December 2022, Standard Chartered warned that Bitcoin could drop to $5,000 next year.
As central banks increased interest rates in 2022, the crypto industry lost trillions of dollars, and several crypto enterprises, including the FTX exchange, went bankrupt.
Eric Robertsen, global head of research at Standard Chartered Bank, stated that because of interest rate hikes and the FTX collapse, there was insufficient liquidity and investors lost confidence.
However, the collapse of several conventional banks this year has fueled the recovery.
Despite a strong start to 2022, Bitcoin is still a long way from its record high of $69,000.
The move by BlackRock and other asset managers to register for spot Bitcoin ETFs has shifted the mainstream media’s perception of Bitcoin.