The bank estimates the crypto asset to reach a price $50,000 by the end of this year, and then reach $120,000 by the end of 2024
Standard Chartered has upped its bitcoin price forecasts after seeing higher miner profitability.
The bank now estimates the crypto asset to reach a price of $50,000 by the end of this year — a 65% rise from current prices — and then reach $120,000 by the end of 2024, according to a Bloomberg report on Monday.
Geoff Kendrick, head of crypto research and EM FX West at Standard Chartered, said, according to the report, that higher miner profitability will result in lesser net bitcoin supply as miners can sell less while maintaining cash inflows.
Increased miner profitability per bitcoin mined means they can sell less while maintaining cash inflows, lessening net bitcoin supply and pushing bitcoin prices higher, he added, as per the report.
Although bitcoin reached all-time peaks of around $69,000 in 2021, Standard Chartered sees more potential for growth, as per the report.
The bank has increased its prediction for bitcoin from its April estimate that prices would hit $100,000 by the end of 2024, according to the report.
Because bitcoin miners can cover their costs with the sale of fewer bitcoins when prices are high, they can hold on to more bitcoin in expectation of selling them later at higher prices, lowering the availability.
This prediction comes at a tumultuous time in the cryptocurrency sector.
On June 5, it was reported that cryptocurrency prices dropped after the US SEC filed 13 charges against crypto exchange Binance and its founder Changpeng Zhao, claiming that the exchange committed a range of securities law breaches.
Bitcoin was among those whose price dropped at the time, as it was trading at $25,628 on the afternoon of June 5 after having hit $27,093 earlier that day.
