Standard Chartered Predicts Bitcoin's Price Surge to $120,000 in 2024
Standard Chartered, a prominent UK bank, has made a bold prediction regarding Bitcoin's future price, stating that it could potentially surge to $120,000 in 2024. This projection follows their earlier estimate of $100,000 made in April. The bank attributes this optimistic forecast to higher miner profitability, reducing net Bitcoin supply and driving prices higher.
According to Geoff Kendrick, the head of foreign exchange and digital assets research at Standard Chartered, the 12 largest listed miners, accounting for 20% of global Bitcoin mining, sold 106% of mined Bitcoins in Q1 2023. However, this proportion dropped to 100% in Q2 due to lower mining costs and the significant increase in Bitcoin prices, which have risen over 85% since the beginning of the year.
Kendrick explains that if Bitcoin's price reaches around $50,000, the share of newly mined Bitcoins being sold should decline to 20-30%. This reduction in selling could result in a net annual decrease of 250,000 Bitcoins sold, significantly impacting Bitcoin market turnover.
Bradley Duke, the founder and chief strategy officer of crypto ETP provider ETC Group, supports the notion of a significant increase in Bitcoin's price in the near future. Duke highlights the potential approval of Blackrock's spot Bitcoin exchange-traded fund (ETF) application in the US as a key driver for increased demand and a proportional price response.
Furthermore, Bitcoin's supply inflow will be further reduced by the token's fourth halving event, expected in April or May 2024. This event will halve miners' rewards for mining new blocks and verifying transactions by 50%. Historically, previous halving cycles have led to substantial industry consolidation and decreased the average cost of production, resulting in increased miner profitability.
While Standard Chartered's prediction of Bitcoin reaching $120,000 implies a rise of approximately 74% from its previous peak, it's important to consider that Bitcoin's volatility decreases with each halving cycle. Investors and industry participants are eagerly awaiting the next major innovation in the blockchain space, which could generate renewed interest and value beyond Bitcoin.
Although Bitcoin's price may capture attention, the digital asset ecosystem has rapidly matured, shifting its focus to creating demonstrable and enduring value through pioneering innovation. While a thriving crypto market is desired, the industry's true excitement lies in the future development and expansion of the expanding digital asset universe.
In conclusion, Standard Chartered's bullish projection for Bitcoin's price surge to $120,000 in 2024 is based on factors such as higher miner profitability, reduced selling pressure, and the upcoming halving event. While the cryptocurrency market continues to evolve, attention is shifting towards the broader potential of digital assets and the innovations they can bring to various industries.