As Bitcoin (BTC), the world’s leading cryptocurrency, continues to draw attention and investment, many are speculating about its future trajectory. High expectations abound for its price growth, thanks to several upcoming key events. Adding to these anticipations, Standard Chartered recently revealed its prediction for Bitcoin’s value.
The banking giant suggested that Bitcoin could reach $120,000 by the end of 2024, a significant leap from its earlier forecast in April which put Bitcoin’s year-end value at $100,000. The new forecast demonstrates the bank’s strong belief in Bitcoin’s potential, even suggesting a $50,000 value for Bitcoin in 2023.
The Road to a $50K Bitcoin
The bullish projection naturally raises questions about what could fuel such a rise. A variety of factors have the potential to thrust Bitcoin to these levels. One major factor lies in the network’s growth. Bitcoin not only boasts the largest market capitalization among cryptocurrencies, but also exhibits exceptional network activity. Recent data shows an increase in new addresses within the Bitcoin network, signifying ongoing expansion.
One eagerly awaited event is the halving slated for April 2024. Historically, such events have had a positive impact on Bitcoin, with a surge in retail demand expected following the halving. JPMorgan’s recent report predicts a rise in Bitcoin’s price, driven by this trend. Several other predictions suggest Bitcoin could reach $48,000 before the halving and skyrocket to $160,000 post-halving.
According to Standard Chartered, Bitcoin miners could also contribute to the predicted growth. The bank’s top FX analyst, Geoff Kendrick, pointed out that, “Increased miner profitability per BTC mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher.”
At the moment, Bitcoin’s miner profitability stands at a low of 0.075. The cryptocurrency’s current trading price is $30,259, experiencing a minimal daily decrease of 0.02%.