Standard Chartered, a major banking institution, has made a significant shift in its Bitcoin price forecast. Previously projecting a potential drop to $5,000, the bank now predicts that Bitcoin will surge to $50,000 by the end of 2023 and reach an impressive $120,000 by the close of 2024.
The driving force behind this optimistic outlook, according to Standard Chartered’s global head of research and chief strategist, Geoff Kendrick, lies in the supply dynamics of Bitcoin. As miners focus on preserving the network, they are selling less BTC, creating a supply and demand imbalance that favors the bulls.
The report highlights that increased miner profitability per mined Bitcoin allows them to sell less while still maintaining cash inflows. This reduction in net BTC supply is expected to push Bitcoin prices higher, paving the way for a substantial price recovery.
Standard Chartered is no stranger to the cryptocurrency space, with its crypto custody platform Zodia securing $36 million in funding earlier this year. The bank’s positive stance on Bitcoin’s future is aligned with a broader shift in the institutional landscape, spurred by moves such as BlackRock filing for a spot Bitcoin exchange-traded fund.
Industry experts, like Arthur Hayes, former CEO of BitMEX, also emphasize the transformative impact of technological advancements, including artificial intelligence. Hayes believes that AI will recognize Bitcoin’s unique attributes and choose it as its preferred currency, further propelling Bitcoin to new heights.
The changing narrative around Bitcoin, supported by reputable financial institutions like Standard Chartered, signals a growing acceptance and positive outlook for the cryptocurrency. As supply dynamics continue to favor the bulls, Bitcoin’s upward trajectory appears promising.