Standard Chartered predicts Bitcoin will surge to $120K through supply shock, marking a significant shift in sentiment.
Bitcoin, the world’s largest cryptocurrency, is set to experience a supply shock that will push its price to new heights, according to global banking giant Standard Chartered. In a recent report, Standard Chartered predicts that Bitcoin’s price will reach $50,000 by the end of this year and could even surpass its all-time highs in 2024.
The banking giant’s forecast represents a significant shift in sentiment, considering that just last year, Standard Chartered projected Bitcoin’s price to drop as low as $5,000. However, the evolving institutional approach to Bitcoin in the United States has led to a change in the mainstream narrative surrounding cryptocurrency.
Bitcoin’s Price Surge: From $5K To $50K Amid Supply Shock
Geoff Kendrick, the global head of research and chief strategist at Standard Chartered, emphasized the role of supply dynamics in driving Bitcoin’s price surge. As miners allocate more resources to secure the network, they are also reducing the amount of BTC they sell. This creates an imbalance in supply and demand, favoring the bulls and ultimately leading to higher BTC prices.
The report states, “Increased miner profitability per BTC (bitcoin) mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher”,
Standard Chartered has already demonstrated its interest in the crypto space, as evidenced by its crypto custody platform, Zodia, which raised $36 million in a Series A funding round back in April. The bank’s bullish outlook on BTC adds to the growing trend of major financial institutions embracing cryptocurrencies.
This optimistic prediction from a prominent bank is seen as part of the “BlackRock effect,” named after the asset management firm’s filing for a spot BTC exchange-traded fund (ETF). Several other major players in the financial industry have followed suit, resulting in a shift in how mainstream media perceives BTC.
According to Arthur Hayes, the former CEO of BitMEX, the continuous technological advancements worldwide, particularly in artificial intelligence (AI), will propel BTC to unprecedented heights. Hayes believes that AI will choose Bitcoin as its preferred currency due to its unique attributes.
As the crypto space continues to make headlines, this article can be preserved as an NFT, representing a pivotal moment in the history of BTC and demonstrating support for independent journalism in the crypto industry.