Bitcoin price set to hit $120,000 by the end 2024, says Standard Chartered
1 min read 11 Jul 2023, 09:59 AM ISTThe recent rally in the Bitcoin prices along with the broader cryptocurrency market came on the back of multiple filings for Bitcoin exchange-traded funds in the US, including an application by BlackRock Inc.
PremiumBitcoin price may hit as much as $120,000 by the end of 2024, almost quadruple the current price, expect analysts at Standard Chartered as increasingly cash-rich miners reduce their sales of the token.
Bitcoin, the world’s largest cryptocurrency by market value, was trading 1.18% higher at $30,495.67 on Tuesday. The coin has rallied more than 82% this year so far, but is still below its record high of nearly $69,000 hit in November 2021.
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“Increased miner profitability per BTC mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher," Geoff Kendrick at Standard Chartered wrote.
In April, Standard Chartered forecast that Bitcoin could reach $100,000 per coin by the end of next year. That underestimated the impact higher miner profitability would have on reducing the supply of Bitcoin in the marketplace, they now say, and expect the price to hit $50,000 by the end of this year before jumping to as much as $120,000 in 2024, Bloomberg reported.
“At recent prices, they (miners) have been selling 100% of new BTC; at USD 50,000 we think they would sell 20-30%," Kendrick wrote.
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Moreover, the upcoming “halving" in 2024 will add to the supply pressures. Halving is a preprogrammed event that reduces the supply of Bitcoin rewards available to miners from about 900 per day to about 450. Halving occurs every four years and keeps Bitcoin below its limit of 21 million tokens.
The recent rally in the Bitcoin prices along with the broader cryptocurrency market came on the back of multiple filings for Bitcoin exchange-traded funds in the US, including an application by BlackRock Inc.
Read here: BlackRock refiles Bitcoin ETF application naming Coinbase as surveillance sharing partner
Bitcoin mining is an energy-intensive process in which miners use powerful computers to validate transaction data on the Bitcoin blockchain, keeping the network running and earning the token as a reward.
They profit by selling the awarded Bitcoin into the market. When Bitcoin prices are higher miners can cover costs selling fewer Bitcoin, holding on to more in the expectation of higher prices in the future, Bloomberg report said.
