Banking giant Standard Chartered has revised its Bitcoin (BTC) price prediction, anticipating a substantial recovery and a surge to $50,000 by the end of 2023. Furthermore, the report from Standard Chartered’s global head of research and chief strategist, Geoff Kendrick, indicates that BTC is expected to surpass its all-time highs in 2024, reaching $120,000. This optimistic outlook reflects a changing narrative around the largest cryptocurrency, driven by evolving institutional approaches and supply dynamics.
Standard Chartered attributes the expected price increase to the behavior of Bitcoin miners who, in their pursuit of greater profitability, are hoarding BTC rather than selling it. As miners dedicate more resources to securing the network, the reduced supply of BTC creates a supply-demand imbalance that is likely to favor the bulls. Global head of research and chief strategist, Geoff Kendrick states, “Increased miner profitability per BTC mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher.”
In April 2023, Kendrick predicted that the recent crypto winter is finally over and Bitcoin could potentially reach the USD $100,000 level by the end of 2024. Kendrick believes that the recent instability in the banking sector, the end of the US Federal Reserve’s rate-hiking cycle and the improved profitability of crypto mining will all benefit Bitcoin in the long run.
The bank’s newfound optimism aligns with recent developments in the crypto industry. Major asset managers, including BlackRock, have filed for spot Bitcoin exchange-traded funds (ETFs), signaling a growing acceptance of digital assets among traditional financial institutions. This trend, referred to as the “BlackRock effect,” has sparked a shift in how Bitcoin is perceived in mainstream media.
Arthur Hayes, former CEO of BitMEX, emphasizes that BTC’s potential for exponential growth goes beyond institutional interest. Hayes argues that the steady progress of technological advancements, particularly in artificial intelligence (AI), will propel Bitcoin to new heights. He believes that AI will inevitably select Bitcoin as its preferred currency due to its unique attributes, indicating further potential for price appreciation.
Supporting the positive sentiment surrounding Bitcoin, recent data from Santiment reveals a significant accumulation trend among addresses holding 10 to 10,000 BTC. In the past three weeks alone, these addresses have acquired approximately 71,000 BTC, equivalent to $2.15 billion. This accumulation coincides with the filing of a Bitcoin spot ETF by BlackRock, as well as similar filings by Wisdom Tree, Invesco, Fidelity, and VanEck.
MicroStrategy, led by vocal crypto advocate Michael Saylor, has also reinforced its confidence in Bitcoin. The company recently acquired an additional 12,333 BTC for $347 million, demonstrating its commitment to the cryptocurrency and its ability to capitalize on market fluctuations.
As Bitcoin continues to gain traction and attract increased institutional interest, its price trajectory appears to be on an upward trajectory. The evolving narrative and growing adoption by mainstream financial institutions indicate a positive outlook for Bitcoin and the wider cryptocurrency sector. With Standard Chartered’s bullish forecast, it seems that the coming months could prove to be transformative for the world’s leading digital currency.