Standard Chartered Bank predicted in a report published on Monday that Bitcoin (BTC), the most valuable cryptocurrency in the world, may reach $50,000 by the end of this year and as high as $120,000 by the end of 2024.
The British multinational bank raised its bitcoin price prediction from April’s $100,000 to $150,000. In light of the banking-sector crisis and other variables, Standard Chartered Bank has predicted that bitcoin may rise to that price.
We currently believe this estimate is too conservative, and as a result, we anticipate meeting or exceeding our end-2024 goal, as stated in the report.
Bitcoin’s price has increased by 80 percent since the beginning of the year, and it’s now worth about $30,100.
One of the elements that will drive the price this time, the paper says, is the rising profitability of bitcoin miners.
Geoff Kendrick, head of FX and digital assets research, explained the reasoning for this in a blog post. “The rationale here is that as well as maintaining the bitcoin ledger, miners play a key role in determining net supply of newly mined BTC,” he wrote.
If miners can increase their profits per bitcoin produced, they can sell less of their output while maintaining their cash flows. This will reduce the net supply of bitcoin and cause prices to rise.