The value of Bitcoin, the leading cryptocurrency, could surge to $50,000 by the end of this year** and **$120,000 by late 2024, according to a revised forecast by Standard Chartered. The bank attributes this optimistic outlook to potential supply reductions driven by Bitcoin miners hoarding more of the asset.
Key Drivers Behind the Revised Forecast
- Increased Miner Profitability: Higher Bitcoin prices allow miners to sell fewer coins while maintaining cash flow, reducing net supply.
- Halving Event (2024): The daily Bitcoin supply will halve next April/May due to its built-in scarcity mechanism, further tightening supply.
👉 Discover how Bitcoin halving impacts prices
Market Context
Bitcoin has rallied 80% since January 2023, yet remains below its November 2021 peak of $69,000. The 2022 "crypto winter" — marked by collapsing firms like FTX and rising interest rates — wiped trillions from the sector. However, 2023’s traditional banking crises have fueled renewed interest.
Miner Behavior and Supply Dynamics
- Miners currently sell 100% of newly minted Bitcoins (900/day) to cover costs.
- At $50,000/coin, sales could drop to 20–30%, reducing annual net supply by ~250,000 BTC.
Historical Perspective
While bullish predictions aren’t new (e.g., Citi’s 2020 forecast of $318,000 by 2022), Standard Chartered’s analysis emphasizes structural supply constraints as a critical differentiator.
FAQs
1. Why did Standard Chartered raise its Bitcoin forecast?
The bank cites improved miner profitability and anticipated supply reductions post-halving as key factors.
2. How does miner hoarding affect Bitcoin’s price?
Fewer coins entering the market reduces sell pressure, potentially driving prices higher.
3. What is the Bitcoin halving?
A preprogrammed event that cuts the block reward for miners by 50%, slowing new supply issuance.
👉 Learn more about crypto market trends
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