Standard Chartered, the leading British multinational banking and financial services company, has projected a sharp ascent for Bitcoin's future, citing that the leading cryptocurrency could hit $50,000 by the close of 2023 and surge to a colossal $120,000 by the end of 2024.
In an analysis report released on Monday, Standard Chartered elucidated that the anticipated appreciation in Bitcoin's price could trigger Bitcoin miners to retain an increasing portion of their supply.
Geoff Kendrick, the bank's top FX analyst, explained the rationale behind the shift, highlighting a 20% upside to their previous $100,000 end-2024 forecast.
"Miner profitability per Bitcoin mined has increased, which means they can sell less while maintaining cash inflows, consequently reducing the net Bitcoin supply and pushing Bitcoin prices higher," Kendrick expressed in the report.
Institutional shift bolsters Bitcoin
These bullish estimates for Bitcoin contrast starkly with Standard Chartered's earlier prognosis.
Last year, the bank predicted the Bitcoin price might plummet as low as $5,000, a figure it now believes will multiply tenfold by the end of the year.
The alteration in Standard Chartered's stance mirrors a broader shift in institutional and mainstream attitudes towards Bitcoin, particularly in the United States.
"Supply dynamics and the imbalance between supply and demand are major factors contributing to our bullish outlook," said Kendrick.
He added that technological advancements worldwide, especially in the realm of artificial intelligence, are poised to further fuel the rise of Bitcoin.
Standard Chartered's involvement in the crypto sector extends beyond forecasting. The bank's crypto custody platform, Zodia, successfully raised $36 million in a Series A funding round in April, underlining the bank's active engagement in this burgeoning sphere.
The 'BlackRock Effect' on Bitcoin
A forecast of Bitcoin's bright future from a major bank like Standard Chartered represents yet another manifestation of what industry analysts have recently labeled the "BlackRock effect".
The move by BlackRock and several other leading asset managers to apply for a spot Bitcoin exchange-traded fund has catalyzed a reversal in mainstream media's attitude towards Bitcoin.
