According to Reuters, a recent research report by Standard Chartered Bank predicts Bitcoin (BTC) could surge to $50,000 by the end of this year and potentially reach an impressive $120,000 by the close of 2024.
This update comes after the bank previously anticipated Bitcoin to hit $100,000 within the same timeframe.
Standard Chartered Bank's research report indicates an optimistic shift in their outlook, stating that their previous estimate was too conservative. The report emphasizes the potential for significant upside growth in the cryptocurrency's value, reflecting improved market conditions and various contributing factors, including the banking sector crisis.
Bitcoin has already demonstrated considerable growth in 2023, having increased by 80% since the beginning of the year. At present, the cryptocurrency is trading around $30,100, suggesting ample room for further expansion.
The research report highlights increased profitability for Bitcoin miners as a primary driver for the anticipated price surge. Miners, who play a crucial role in maintaining the Bitcoin ledger and determining the net supply of newly mined BTC, stand to benefit from enhanced profitability per Bitcoin extracted.
As a result, miners can afford to sell a smaller portion of their output while still generating sufficient cash inflows. This reduction in net Bitcoin supply is expected to exert upward pressure on prices, bolstering the cryptocurrency's value.
Standard Chartered Bank's updated projections offer an optimistic perspective on Bitcoin's potential, signaling the bank's confidence in the digital asset's future growth and market dynamics. Will Bitcoin Hit $160k during the next halving?
Bitcoins Price During Halvings
A chart on the performance of Bitcoin relative to the halving cycle was provided by Cryptollica, which shows that BTC price begins to trend up as the halving approaches, followed by a blow-off top phase where its price experiences a parabolic rise and then a rapid sell-off.