Key Takeaways
- Standard Chartered, a leading multinational banking and financial services company, has revised its Bitcoin (BTC) price forecast, predicting a surge to $120,000 by the end of 2024.
- The updated forecast reflects a significant increase from Standard Chartered’s previous April 2024 projection, which anticipated a price of $50,000 for this year.
- Geoff Kendrick, a prominent FX analyst at Standard Chartered, points to increased miner profitability and the subsequent reduction in net BTC supply as the driving factors behind the bank’s revised Bitcoin forecast.
Standard Chartered, a renowned global banking, and financial services company, has raised its Bitcoin price forecast, projecting a potential surge to $120,000 by the end of 2024. This revised outlook signifies a notable increase compared to the bank’s previous projection from April 2024, which anticipated a price of $50,000 for the current year.
Geoff Kendrick, one of the top foreign exchange (FX) analysts at Standard Chartered, explains the rationale behind the bank’s updated Bitcoin forecast. Kendrick highlights increased miner profitability as a crucial factor contributing to the potential price surge.
With Bitcoin mining becoming more profitable due to various factors. These include increased institutional interest, improved infrastructure, and enhanced efficiency of mining operations.
Miners are incentivized to hold onto their Bitcoin rather than sell it immediately. As a result, this could reduce the net supply of Bitcoin available on the market, potentially driving higher prices. Recently, Glassnode also analyzed 74% of Bitcoin holders are in profit.
Despite recent fluctuations, Standard Chartered’s revised forecast reflects growing optimism in the cryptocurrency market. Bitcoin’s price has been consolidating just over $30,000, according to data from CoinMarketCap. The revised forecast suggests a bullish outlook, indicating a potential significant appreciation in value over the coming years.
The updated Bitcoin forecast by Standard Chartered aligns with a broader trend of financial institutions and analysts revising their projections to reflect the growing significance and adoption of cryptocurrencies. While market volatility remains a concern, the increased profitability of Bitcoin mining and its potential impact on supply reduction signal a positive outlook for Bitcoin’s long-term prospects.
Source
https://www.reuters.com/technology/standard-chartered-bumps-up-bitcoin-forecast-120000-2023-07-10/
