Standard Chartered Forecasts Bitcoin to Soar to $50,000 in 2023 and $120,000 by 2024

Global banking giant Standard Chartered has predicted that the value of the leading cryptocurrency, Bitcoin, could surge to $50,000 by the end of this year and reach an astounding $120,000 by the close of 2024.

This optimistic outlook comes as Standard Chartered’s top foreign exchange (FX) analyst, Geoff Kendrick, suggests a 20% “upside” to their previously forecasted $100,000 valuation for Bitcoin at the end of 2024.

Kendrick explained the reasoning behind this revised prediction, highlighting the increasing profitability for Bitcoin miners as a key factor driving the anticipated surge.

He said, “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.”

Although Bitcoin has experienced an impressive 80% surge since the beginning of this year, its current price of just over $30,200 remains less than half of its peak value of $69,000 in November 2021.

The cryptocurrency market suffered a substantial setback in 2022, with trillions of dollars being wiped out as central banks raised interest rates and several crypto firms, including the FTX exchange, collapsed. However, this year has witnessed a remarkable rebound, fueled in part by the collapse of several traditional-style banks.

Standard Chartered’s optimistic forecast is primarily rooted in the belief that Bitcoin miners, responsible for producing approximately 900 new bitcoins daily worldwide, will gradually reduce their sales to cover costs, particularly electricity to power their super-computers.

Currently, miners are estimated to be selling 100% of their newly minted coins. However, if Bitcoin reaches the $50,000 mark, it is anticipated that they will only sell between 20% and 30% of their mined bitcoins.

Geoff Kendrick elaborated on this potential shift, stating, “It is the equivalent of miners reducing the amount of bitcoins they sell per day to just 180-270 from 900 currently.”

Over the course of a year, this reduction in sales would result in a decrease in miner supply from 328,500 bitcoins to a range of 65,700-98,550, effectively reducing the net BTC supply by approximately 250,000 bitcoins annually.

Another contributing factor to the bullish forecast is the upcoming halving event, set to occur around April or May, where the daily production of new bitcoins will be cut in half. This mechanism, designed to gradually limit supply and maintain Bitcoin’s appeal, is expected to further bolster its value.