CRYPTO: The international bank Standard Chartered expects strong upward pressure on Bitcoin and estimates that the BTC could exceed 100,000 dollars before the end of 2024.
The international bank Standard Chartered expects strong upward pressure on Bitcoin. In a recent report, she estimates that the BTC could exceed 100,000 dollars before the end of 2024. Among the justifications, she puts forward the increased profitability of miners, but also the BlackRock effect which has completely revitalised the sector.
$50,000 at the end of 2023, $120,000 for 2024?
These are the forecasts of the British bank which considers that Bitcoin could hang on the threshold of 50,000 dollars by the end of the year before exceeding 6 figures in 2024. Better, according to analysts of the bank including Geoff Kendrick, the mother of the cryptocurrency could hit $120,000 by the end of 2024. That’s almost four times its current price. On social networks, this very bullish forecast inevitably aroused enthusiasm:
BREAKING: $800 billion Standard Chartered Bank now forecasting $120,000 #Bitcoin price by 2024 pic.twitter.com/4oDzolG44p
— Bitcoin Magazine (@BitcoinMagazine) July 10, 2023
To justify this forecast, the bank advances a first argument: the behaviour of miners. And, according to the bank, there are now fewer sellers than usual, because the profitability per mined BTC tends to increase. An element that could play in favour of the Bulls. A fortiori if it were to be confirmed over the long term. As the bank report states:
Increasing miners’ profitability per BTC (bitcoin) mined means they can sell less while maintaining cash inflows, thereby reducing the net supply of BTC and pushing BTC prices higher.
Be that as it may, it is clear that Standard Chartered is completely changing its tune. At the end of 2022, the bank made a much more pessimistic forecast for Bitcoin. Considering that the asset could drop below 5,000 dollars by the end of 2023.
The “BlackRock effect” as a bullish factor
Among the most impactful explanations to explain the expected increase, the bank’s analysts put forward the BlackRock argument. It is true that since the ETF request made on June 15th by the largest asset manager in the world, the enthusiasm for the crypto market is very palpable. In less than a month, Bitcoin has largely recovered from 26 to over 30,000 dollars. In its analysis, Standard Chartered believes that this announcement has not yet produced its full impact on the market.
But pushing further, some also see the BlackRock effect as an element of credibility for the crypto market. The simple fact that a major bank with global reach openly displays an optimistic forecast for Bitcoin would be a form of manifestation of the BlackRock effect. Others like Arthur Hayes believe that advances in certain fields like artificial intelligence could be likely to propel Bitcoin king.
Note that Standard Chartered is now very active in the world of crypto. Last month, the bank announced the launch of Zodia Custody, a staking platform for its institutional clients.
