Standard Chartered predicts that Bitcoin will rise to $120,000 in 2024
Bitcoin has recently gained momentum following Standard Chartered's prediction that it will reach $120,000 by the end of 2024, with a projected price of $50,000 by the end of this year.
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Despite Bitcoin briefly dropping below the $30,000 mark, the prediction has boosted market confidence, resulting in Bitcoin's rise during early trading on Tuesday.
Apart from Bitcoin, Ether and most of the top ten tokens have also risen. The entire cryptocurrency market has increased by 0.81% in market capitalization in the past 24 hours, amounting to $1.18 trillion, with trading volumes surging by 70.03% to reach $3.354 billion.
Standard Chartered predicts that the next Bitcoin halving event, scheduled for April next year, could reduce supply and increase prices, leading to miners hoarding tokens. The bank's FX analyst, Geoff Kendrick, stated that there is currently a 20% "upside" to the prediction.
Bitcoin prices have surged by 80% since the beginning of the year but currently remain slightly above $30,200, less than half of the $69,000 it reached in November 2021. Kendrick estimates that miners have been selling all of their newly mined 100% Bitcoins, but if the price reaches $50,000, they may only sell 20% to 30%.
Kendrick said,
"This equates to miners reducing the amount of Bitcoin they sell each day from the current 900 coins to only 180 to 270 coins."
The report also mentions that 2022 will be a challenging period for the cryptocurrency market. Central bank rate hikes and a series of cryptocurrency company collapses have wiped out trillions of dollars from the industry. However, the collapse of some traditional-style banks this year has spurred a rebound in the cryptocurrency market.
It is worth noting that Citibank analysts overestimated the rise of Bitcoin in November 2020, stating that it could climb to $318,000 by the end of 2022. However, the price at the end of last year was $16,500, a drop of about 65%.
In addition, investment products related to cryptocurrencies saw a net inflow of $136 million on July 7, according to a report released on Monday by European cryptocurrency investment firm CoinShares. This marks three weeks of inflows after nine weeks of outflows.
It is important to note that the price of Bitcoin still carries risks. The price of Bitcoin has been volatile over the past few months, with significant fluctuations. Last weekend, the price of Bitcoin dropped again due to uncertainty over the approval of a Bitcoin ETF.
