Standard Chartered Forecasts Bitcoin's Price Surge, Predicts $120,000 by 2024

 Standard Chartered Forecasts Bitcoin's Price Surge, Predicts $120,000 by 2024

Standard Chartered Forecasts Bitcoin's Price Surge, Predicts $120,000 by 2024(Image-Getty)

Standard Chartered, the prominent multinational banking, and financial services company based in the United Kingdom, has projected a significant rise in the future value of Bitcoin. According to their analysis report released on Monday, Standard Chartered predicts that Bitcoin could reach $50,000 by the end of 2023 and surge even higher to an impressive $120,000 by the conclusion of 2024.

The report from Standard Chartered provides insight into the factors driving this anticipated increase in Bitcoin's price. They explain that such appreciation could lead Bitcoin miners to hold onto a larger portion of their supply. Geoff Kendrick, the bank's top FX analyst, elaborated on this shift, highlighting a 20% increase from their previous forecast of $100,000 for the end of 2024.

Kendrick stated in the report that the profitability per Bitcoin mined by miners has risen. As a result, they can sell fewer Bitcoins while still maintaining cash inflows. This reduction in the net Bitcoin supply contributes to the upward pressure on Bitcoin prices.

These optimistic projections for Bitcoin by Standard Chartered starkly contrast with their earlier prediction from last year when they anticipated the Bitcoin price to potentially plummet to as low as $5,000. They now believe that the price will increase tenfold by the end of this year.

The change in Standard Chartered's stance reflects a broader shift in institutional and mainstream attitudes towards Bitcoin, particularly in the United States. Kendrick emphasized that supply dynamics and the imbalance between supply and demand are significant factors contributing to their bullish outlook. Furthermore, Kendrick mentioned that technological advancements worldwide, particularly in the field of artificial intelligence, are expected to further bolster the rise of Bitcoin.

It is worth noting that Standard Chartered is not solely engaged in forecasting Bitcoin's future. The bank's involvement in the crypto sector extends beyond predictions. Their crypto custody platform, Zodia, successfully raised $36 million in a Series A funding round in April, demonstrating their active participation in this rapidly growing sphere.

The positive forecast for Bitcoin's future by a major institution like Standard Chartered reflects what industry analysts have referred to as the "BlackRock effect." The decision by BlackRock and other leading asset managers to apply for a Bitcoin exchange-traded fund has played a pivotal role in shifting the mainstream media's perception of Bitcoin.