“Increased miner profitability per BTC (bitcoin) mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher,” said Standard Chartered top FX analysts, Geoff Kendrick
Currently valued at $30,200, Bitcoin has grown by over 80 percent since the start of the year. Displaying an impressive growth, the cryptocurrency is still valued at less than half of its $69,000 peak in November 2021; Standard Chartered, however has some great news.
Publishing its latest forecast for Bitcoin prices, Standard Chartered suggests that Bitcoin value can reach $50,000 (PKR 13,742,000) this year and go up to $120,000 (PKR 32,980,800) by the end of 2024, reaching its new peak value somewhere between this time period.
Standard Chartered believes that the recent rise in Bitcoin prices will push Bitcoin mines towards hoarding the cryptocurrency’s supply therefore increasing its value.
“Increased miner profitability per Bitcoin mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher,” said Standard Chartered top FX analyst, Geoff Kendrick.
BREAKING: $800 billion Standard Chartered Bank now forecasting $120,000 #Bitcoin price by 2024 pic.twitter.com/4oDzolG44p
— Bitcoin Magazine (@BitcoinMagazine) July 10, 2023
Standard Chartered made similar announcements in its end-2024 forecast for bitcoin, which was published in April and predicted Bitcoin to be at $100,000 (27,484,000) by the end of 2024 while also adding that the “so-called crypto winter was over”.
According to Kendrick, as Bitcoin prices increase, miners would soon need to sell less Bitcoins each day in order to cover their mining expenses. Miners who have recently been selling 100 percent of their new coins, will only be selling 20 to 30 percent of their produce once Bitcoin value reaches $50,000.
“It is the equivalent of miners reducing the amount of bitcoins they sell per day to just 180-270 from 900 currently. Over a year, that would reduce miner selling from 328,500 to a range of 65,700-98,550 – a reduction in net BTC supply of roughly 250,000 bitcoins a year,” said Kendrick in the report.
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