Last April, Standard Chartered Bank delivered its growth forecast for the price of bitcoin. According to them, the flagship crypto is expected to reach a valuation of $120,000 in 2024.
Standard Chartered raises its projections for bitcoin to $120,000 in 2024
In 2024, the price of bitcoin (BTC) is expected to exceed the $100,000 previously announced by Standard Chartered Bank. According to the latest forecasts from the American bank, it should reach $120,000.
The bank thus raises its price projections for bitcoin 20% for the next few months. She estimates that the valuation of the flagship crypto should reach $50,000 by the end of 2023. A prelude to the $120,000 which should be reached by the end of 2024.
This reversal of the Standard Chartered Bank, which intervenes in the middle of the bear market, questions. The financial institution has an explanation that justifies it. According to the latter, the new projections of the bank are linked to the activities of bitcoin miners.
Standard Chartered Bank estimates that their current mining operations support the addition of approximately 900 new bitcoins daily. In this context, bitcoin miners will have to limit BTC sales.
This, in order to honor their operational expenses, in particular those related to the production of the energy useful for the supply of their supercomputers. A way for them to increase the profits related to their activities.
“Increasing the profitability of mining operations per BTC mined means that miners can sell less while maintaining cash inflows, reducing the net supply of BTC and pushing BTC prices higher”said Geoff Kendrick, currency analyst at Standard Chartered Bank.
In the scenario of bitcoin at $50,000, the expert believes that miners will sell 20-30% of the BTC produced. This would equate to a reduction in total BTC sold of 180-270, down from 900 currently.
If this rate is maintained, it would imply “a reduction in net BTC supply of approximately 250,000 bitcoins per year”. What effectively push the flagship crypto to new heights.
The flagship crypto is on an uptrend. Twice this year bitcoin has reached a valuation of $30,000. Many believe that this trend is only in its infancy. Some see BTC peaking at $1,000,000 by the end of the decade.
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