Bitcoin Price Prediction: Miner-Driven Growth Could Reach $120,000 by 2024

Standard Chartered Bank predicts a significant surge in Bitcoin’s value, expecting it to climb to USD$50,000 by the end of this year and subsequently reach a remarkable high of $120,000 by 2024’s close. This optimistic forecast follows an 80% increase in Bitcoin’s value since the beginning of the year, with its current trading position hovering around $30,100.

The British multinational financial institution initially proposed a $100,000 Bitcoin valuation by 2024 in April, but has now identified a 20% potential increase, which it attributes to several factors, including the recent banking-sector crisis. “Our initial estimate may have been too conservative,” reads the latest report, suggesting a more substantial rise on the horizon.

In the analysis, Geoff Kendrick, the bank’s leading FX and digital assets researcher, outlined a pivotal aspect that could catalyze this price escalation: Bitcoin miner profitability. As miners contribute significantly to the Bitcoin supply chain by creating and maintaining the ledger, Kendrick reasons that the increasing profitability per Bitcoin mined allows these miners to sell less while sustaining cash inflows.

Previously, miners were offloading 100% of their new coins, but if Bitcoin hits the forecasted $50,000 mark, Kendrick anticipates that they would only need to sell between 20-30%. This change equates to a daily selling reduction from 900 to merely 180-270 Bitcoins, leading to an annual reduction from 328,500 to a range of 65,700-98,550. This significant decrease in the net Bitcoin supply, approximately 250,000 Bitcoins per year, could intensify the demand and drive prices higher.

Moreover, an inherent supply and issuance mechanism, scheduled to halve the total number of Bitcoins that can be mined daily around April or May, will further limit supply. This mechanic has traditionally been instrumental in maintaining Bitcoin’s appeal, and its impending activation will only fuel this bull run further.

Despite the crypto sector’s significant losses in 2022, including the fall of multiple crypto firms and traditional-style banks, optimism pervades. Skyrocketing predictions have often accompanied Bitcoin’s previous rallies, and as history repeats, this sentiment shows no signs of abating. Standard Chartered’s report hence underscores that Bitcoin’s value ascension will be driven by the convergence of increased miner profitability, banking-sector crises, and inherent supply limitations.

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