- Standard Chartered raises its Bitcoin price forecast to $120,000 by 2024 with potential to reach $50,000 this year.
- Ethereum is predicted to touch $8,000, with a long-term potential between $26,000 to $35,000.
According to recent Reuter updates, the renowned British banking giant, Standard Chartered, predicts Bitcoin to potentially reach $50,000 this year and soar up to $120,000 by the end of 2024. This optimistic projection comes after the bank’s previous prediction of $100,000 for Bitcoin by 2024.
Factors Pushing Bitcoin’s Value
One of the pivotal reasons behind the bank’s bullish forecast is the recent behavior of Bitcoin miners. Geoff Kendrick, one of Standard Chartered’s leading FX analysts, emphasized that as the profitability per Bitcoin mined increases, miners could choose to retain more of their supply. By doing so, they would naturally reduce the net Bitcoin supply available in the market, thus pushing its prices higher. Kendrick estimates that miners who currently sell 100% of their new coins might reduce this to a mere 20-30% if Bitcoin hits the $50,000 mark.
Reducing Bitcoin Supply
Further supporting this argument, Kendrick highlighted that if miners decide to reduce their selling habits, it would significantly diminish the amount of Bitcoin being sold daily. The implications of this would be a reduction in the net Bitcoin supply by roughly 250,000 bitcoins annually. Also, come next April or May, the daily Bitcoin mining capacity is set to decrease by half due to its inbuilt supply and issuance mechanism, which is aimed at maintaining Bitcoin’s appeal and scarcity.
Ethereum’s Conservative Projection
On the Ethereum front, Kendrick’s projection of $8,000 is deemed conservative. He believes that several potential use cases of Ethereum, which could further boost its value, haven’t yet been fully realized. This provides a foundation for his long-term target ranging from $26,000 to $35,000 for Ethereum.
Standard Chartered’s optimistic stance on cryptocurrencies aligns with various market experts and financial institutions that have expressed bullish forecasts for both Bitcoin and Ethereum. For instance, Ark Invest founder, Cathie Woods, suggests Bitcoin could touch $1 million by 2030, and Ethereum might reach a staggering $160,000 in the same timeframe.