Standard Chartered has unveiled its latest Bitcoin price prediction, forecasting that the world’s largest cryptocurrency could surge to as high as $120,000 by the end of 2024. The bank believes that a supply shock will be the driving force behind this significant price increase.
In April of this year, Standard Chartered had previously predicted that Bitcoin would reach $100,000 by the end of 2024. However, Geoff Kendrick, a top forex analyst at the bank, now suggests a 20% upside to their earlier projection.
Kendrick’s report highlights that increased profitability for Bitcoin miners per mined BTC allows them to sell less while maintaining cash inflows. This reduction in net BTC supply is expected to push prices higher.
It is important to note that accurately predicting Bitcoin’s price, especially in the long term, remains highly challenging. Nevertheless, the optimistic predictions from major financial institutions like Standard Chartered indicate growing interest from institutional investors in the upcoming bull run.
Bitcoin has been a hot topic in the cryptocurrency sector for nearly a month, particularly since BlackRock filed for a Bitcoin spot ETF. The coin experienced a series of surges, briefly surpassing $30,000 per coin. However, it faced resistance at the $31,000 level and was unable to establish a sustained position above it.
The upcoming fourth halving event in the next year, which occurs approximately every 210,000 blocks, is anticipated to have a positive impact on Bitcoin’s price. Historically, after each halving, Bitcoin undergoes a correction phase followed by a substantial price surge. After the 2016 halving, the price climbed to $20,000, and after the subsequent halving, it reached $69,000 per coin.
Standard Chartered expects the upcoming halving to propel Bitcoin to unprecedented heights, projecting a price of $120,000 by the end of 2024. The bank anticipates a significant recovery for BTC by the close of 2023, with a potential price of $50,000 by year-end and further growth in 2024.
Additionally, Standard Chartered suggests that the expected price jump could incentivize miners to hold onto their rewards instead of immediately selling them on exchanges. This potential reduction in supply may contribute to Bitcoin’s recovery towards the $50,000 mark.
