Bitcoin (BTC) could potentially reach $50,000 this year and break its all-time high in 2024, according to a new report by Standard Chartered. The banking giant’s forecast represents a significant shift in its previous stance on the cryptocurrency.
Standard Chartered had previously predicted that the price of BTC could plummet to as low as $5,000. However, the institution’s global head of research and chief strategist, Geoff Kendrick, now believes that BTC/USD will hit $50,000 in 2023 and reach $120,000 by the end of 2024.
The report attributes this optimistic outlook to supply dynamics. As more miners allocate resources to maintain the network, they are selling fewer BTC, leading to a supply and demand imbalance that favors higher prices. The report suggests that increased miner profitability per BTC mined allows them to sell less while still generating cash inflows, ultimately reducing the net supply of BTC and driving prices upward.
Interestingly, Standard Chartered is already involved in the cryptocurrency space through its crypto custody platform, Zodia, which recently raised $36 million in a Series A funding round. This further underscores the institution’s growing confidence and involvement in the crypto industry.
Standard Chartered’s positive BTC price prediction aligns with the changing institutional attitude towards Bitcoin in the United States, referred to as the “BlackRock effect.” The filing of a spot Bitcoin exchange-traded fund by BlackRock, a major asset manager, has contributed to a shift in how mainstream media portrays Bitcoin.
Arthur Hayes, the former CEO of BitMEX, believes that Bitcoin’s price will soar due to ongoing technological advancements worldwide. Hayes specifically highlights the potential impact of artificial intelligence, which could embrace Bitcoin as its preferred currency because of its unique attributes.
It is worth noting that this article does not provide investment advice or recommendations. As with any investment or trading decision, readers should undertake their own research and consider the risks involved.
In summary, Standard Chartered’s latest report forecasts that Bitcoin could reach $50,000 this year and even surpass its previous all-time high in 2024. The institution’s newfound optimism is attributed to supply dynamics, with miners selling fewer BTC as they dedicate more resources to the network. This forecast reflects the changing narrative around Bitcoin in the mainstream financial sector and the growing involvement of major institutions in the crypto industry.
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