Standard Chartered Bank has reiterated its bullish stance on Bitcoin, predicting that the cryptocurrency could reach $120,000 by the end of 2024. The bank's analyst, Geoff Kendrick, believes that with decreasing miner sales and increased mining profitability, Bitcoin has the potential for a 300% increase from current levels. Kendrick also highlighted the potential impact of a reduction in Bitcoin supply on prices and inflation rates. The approval of Bitcoin-related ETFs in the US could further boost its value and mainstream adoption.
Our analysis of the situation
Intro:
Hold onto your hats, crypto enthusiasts! Standard Chartered Bank, known for its rollercoaster ride of predictions, has yet again sparked excitement in the crypto world. In an email sent to an undisclosed insider, the bank reiterated its bold Bitcoin (BTC) forecast, suggesting that the leading cryptocurrency could skyrocket to an astonishing $120,000 by the end of 2024. Let's dive into the details and explore the factors that could potentially send Bitcoin to the moon.
Keeping the Bulldozer Going:
Standard Chartered analyst Geoff Kendrick is steadfast in his predictions, sticking to the target of $100,000 by the close of this year and soaring to $120,000 in 2024. Despite a temporary backtrack in July, the bank is back on track, attributing its bullish stance to the decreasing miner sales.
The Roadmap of Kendrick:
Back in April, Kendrick first predicted Bitcoin's climb to $100,000 within the year. With the collapse of banks in the United States and financial turbulence at companies like Signature Bank, the analyst believed that Bitcoin would reap the benefits. Then came the minor slump in July, when Standard Chartered adjusted its projection to a more conservative retracement to $50,000 by the end of 2023. However, Kendrick remained steadfast in his conviction that the crypto asset still had the potential to reach $120,000 by 2024.
Mining Profitability as a Catalyst:
Standard Chartered cites increased miner profitability as a key driver for Bitcoin's ascent. As mining becomes more lucrative, miners can afford to sell fewer tokens while maintaining a steady cash flow. This reduced supply, in turn, acts as a catalyst for the price appreciation of Bitcoin.
Strategic Mining and Supply Reduction:
Kendrick's crystal ball predicts that miners will have sold off all their Bitcoin holdings by the second quarter of next year. However, he foresees a gradual reduction in sales over time, catapulting Bitcoin to new heights. This trend typically emerges when Bitcoin's price surpasses the average total cash cost of mining. By the first quarter of 2024, if the BTC price hits $50,000 as predicted, the "BTC less all cash costs" calculation would rise to $30,000. Selling only 27% of the BTC mined during that period could generate the same excess cash as selling 100% in the second quarter of 2023. This strategic approach could potentially decrease Bitcoin's net supply by approximately 250,000, not only influencing prices but also impacting the inflation rate.
ETF Approval as a Booster:
Bitcoin's positive trajectory in recent weeks, combined with the potential approval and introduction of the first spot Bitcoin-related exchange-traded fund (ETF) on traditional stock exchanges in the United States, has spurred excitement. Such a development could pave the way for mainstream adoption and drive the value of Bitcoin sky-high.
Conclusion:
It's a wild ride in the world of Bitcoin, and Standard Chartered Bank is buckled in for the long haul. With renewed bullishness and predictions of Bitcoin soaring to $120,000 by 2024, it's a time for crypto enthusiasts to remain optimistic. But keep in mind that the crypto market can be as unpredictable as a rollercoaster. So, fasten your seatbelts, keep an eye on the miners' strategic moves, and watch out for ETF approvals because Bitcoin's journey to the moon is far from over.
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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