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.
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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.
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