Experts called the condition for the growth of bitcoin (BTC) to $120,000

Date: 2023-07-11 Author: Karina Ziganova Categories: BLOCKCHAIN
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Standard Chartered analysts have raised their forecast for the price of bitcoin for 2024 from $100,000 to $120,000. 

The bank's leading currency analyst, Jeff Kendrick, believes that bitcoin's potential for growth has increased by 20% compared to the initial forecast. The catalyst for such an adjustment is to increase the profitability of mining. Standard Chartered suggests that miners need to sell less BTC to cover operating costs, primarily energy consumption.

"Increasing the profitability of miners for BTC mining means that they can sell less while maintaining an influx of money, reducing the net supply of BTC and raising BTC prices," he explained.

Kendrick estimated that miners have been selling 100% of their newly mined coins lately. However, with a bitcoin price of $50,000, miners will only need to sell 20-30% of the new coins. The upcoming halving in 2024 will also contribute to a reduction in this indicator

"Within a year, this will reduce the sales of miners from 328,500 to the range of 65,700-98,550. That is, this means a reduction in the net supply of BTC by about 250,000 bitcoins per year," the analyst explained.

What's happening with bitcoin now
The largest cryptocurrency started 2023 with positive dynamics — in mid-April, BTC was worth above $19,000, which was the highest since November 2022. In April, bitcoin jumped to $29,000, updating the maximum in 10 months. In early July, BTC exceeded the $31,000 mark and updated its annual maximum.

In total, the price of BTC has increased by 80% since the beginning of the year - its current level is $30,346 at the time of writing. However, this is still less than half of BTC's maximum price of $69,000 in November 2021.

Why Bitcoin Will Rise and What Could Go Wrong
Analysts at JPMorgan Bank believe that the price of BTC should return to the values of March 2022. The reason is that this asset is seen as an alternative way to save savings. The upcoming BTC halving will also contribute to the price increase.

However, in the current macroeconomic and geopolitical climate, it will be difficult for it to grow. Regulators continue the pressure, reducing interest in the crypto industry and forcing many companies to wind down their business or migrate. The lack of interest from institutional investors can also reduce the price of BTC. 
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