In a recent report, banking giant Standard Chartered predicts that Bitcoin (BTC) will reach $50,000 this year and achieve all-time highs in 2024. The forecast represents a significant shift in the institution’s stance on Bitcoin, as it previously projected a price drop to as low as $5,000.
According to Geoff Kendrick, Global Head of Research & Chief Strategist at Standard Chartered, the anticipated price surge is primarily influenced by supply dynamics. As Bitcoin miners allocate more resources to safeguarding the network, they are reducing the amount of BTC sold, creating an imbalance between supply and demand that favors the bulls. This increased profitability per BTC mined allows miners to sell less while still maintaining cash inflows, ultimately reducing the net BTC supply and driving prices higher.
Standard Chartered’s positive outlook on BTC aligns with the growing trend of institutional acceptance and adoption of cryptocurrencies. The bank has already ventured into the crypto space with its crypto custody platform, Zodia, raising $36 million in a Series A funding round in April.
The report from Standard Chartered reflects what some analysts refer to as the ‘BlackRock effect,’ where major banks and asset managers are becoming more optimistic about Bitcoin’s future price potential. The approval and launch of exchange-traded funds (ETFs) by these institutions have contributed to a shift in how mainstream media portrays Bitcoin.
Arthur Hayes, former CEO of BitMEX, suggests that Bitcoin’s continued technological advancements, particularly in artificial intelligence (AI), will further propel its value. He believes that AI will recognize Bitcoin’s unique attributes and choose it as the preferred digital currency.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions, as every move in the market carries inherent risks.