Standard Chartered Bank, a global banking giant, has adjusted its previous forecast for Bitcoin’s price and predicts a surge to $50,000 by the end of this year and $120,000 by the following year. The bank’s analysts attribute this upward projection to miners’ anticipated increase in Bitcoin hoarding. The revised prediction comes as Standard Chartered Bank declares the end of the “crypto winter.”
In a report released on July 10 by well-known media, including Reuters, Standard Chartered Bank stated that the recovery of Bitcoin’s price was underway. The bank’s original forecast, released in April, predicted a price of $100,000 by the end of 2024. However, the bank’s top foreign exchange analyst, Geoff Kendrick, stated there is a 20% upside to that prediction. Kendrick explained
“Increased profitability for miners to mine Bitcoin means they can reduce sales while maintaining cash inflow, reducing the net supply of Bitcoin and driving up Bitcoin’s price.”
Standard Chartered Bank’s Bullish Bitcoin Forecast Holds Strong Amid Positive Crypto Indicators
Standard Chartered Bank’s projection aligns with recent positive indicators in the cryptocurrency market. Over the past three weeks, there have been consistent inflows of crypto assets, and the monthly Moving Average Convergence Divergence (MACD) has turned green, pointing towards a bullish outlook for Bitcoin’s price. Last week alone, net inflows of crypto asset investment products totaled $136 million.
Bitcoin is trading at $30,215, exhibiting sideways movement over the past 24 hours. The cryptocurrency’s 24-hour low and high are $29,985 and $30,427, respectively. Notably, trading volume has seen a 30% increase in the past 24 hours, indicating growing interest among traders.
While miners prepare to hold onto more Bitcoin, mining remains challenging. On-chain data platform Glassnode reported that the Bitcoin Hash Rate, a measure of the computing power dedicated to mining, continues to rise, reaching an all-time high of 395 EH/s. This level of hashing control is equivalent to 395 quintillion guesses per second in an attempt to solve a block.
It is worth noting that the United States leads globally regarding cryptocurrency and Bitcoin mining. The energy-intensive nature of Bitcoin mining has prompted a shift towards renewable energy sources, such as methane gas emissions, contributing to climate change mitigation.
Standard Chartered Bank’s optimistic Bitcoin price prediction is part of the “BlackRock effect.” The move by BlackRock, the world’s largest asset manager, to file for a Bitcoin exchange-traded fund has shifted how mainstream media perceives Bitcoin. This, coupled with ongoing technological advancements worldwide, has fueled the belief among analysts, including former BitMEX CEO Arthur Hayes, that Bitcoin’s price will continue to soar.
Hayes specifically highlights artificial intelligence as a significant catalyst for Bitcoin’s success, as he believes AI will choose Bitcoin as its preferred currency due to its unique attributes.
Bitcoin Mining Difficulty And Renewable Energy
Bitcoin mining difficulty remains a significant challenge for miners. Despite this, the increasing Bitcoin Hash Rate demonstrates the industry’s commitment to expanding computational power. Notably, the United States leads in Bitcoin mining, and efforts to adopt renewable energy sources contribute to mitigating the environmental impact of mining activities.
Standard Chartered Bank’s revised forecast indicates that the ongoing developments and positive outlook for Bitcoin reflect cryptocurrencies’ growing acceptance and potential in the global financial landscape.
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