In a recent prediction, Standard Chartered anticipates Bitcoin’s BTC/USD value to surge significantly, hitting a high of $100,000 by late 2024.
What Happened: According to a report by Business Insider, the financial institution, Standard Chartered, foresees a substantial increase in Bitcoin’s value. The bank expects the leading cryptocurrency to more than double its current value, reaching a mark of $100,000 by the end of 2024.
The optimistic prediction is founded on various factors, with Bitcoin’s ongoing supremacy in the cryptocurrency space and the increased accumulation of the token by miners playing key roles. Geoff Kendrick, the head of FX research at Standard Chartered, highlighted the rise in Bitcoin’s share of the digital asset market which has grown from 45% in April to about 50%, contributing an extra $10,000 to its price.
See Also: ‘Dogecoin Killer’ Shiba Inu Burn Rate Skyrockets 10,000% Thanks To This Good Samaritan
The possibility of the approval of Bitcoin spot ETFs in the U.S. also contributes to Standard Chartered’s bullish forecast. Kendrick expressed his belief that diminishing Treasury yields could further fuel Bitcoin’s value, as cryptocurrencies often serve as long-term trades.
Furthermore, the sale of mined Bitcoin decreased to approximately 80% in the fourth quarter. The trend of miners holding onto larger quantities of the token as the price ascends is also visible.
The decreasing Treasury yields, currently at 4.60% from the previous month’s high of 5.17%, could further boost Bitcoin’s value, considering crypto’s propensity to be a long-term trade.
Why It Matters: In July, Standard Chartered predicted that Bitcoin could reach $50,000 within the year and an impressive $120,000 by 2024’s end. The bank suggested that the rising value of Bitcoin might encourage Bitcoin miners to hoard more units.
As Bitcoin’s price increases, miners are retaining larger amounts of Bitcoin, with sales of mined Bitcoin decreasing to around 80% in Q4. The forthcoming Bitcoin halving in April is predicted to reduce the new supply and typically result in a peak in prices 12-18 months after the event.
Read Next: ‘Dogecoin Killer’ Shiba Inu’s Blazing Burn Rate Soars 5,000%, 2.7M Tokens Gone In A Day
Image via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
