Standard Chartered’s great expectations for Bitcoin in 2024

Standard Chartered, a UK bank, predicts that Bitcoin prices could reach $50,000 by the end of 2023 and $120,000 in 2024, an increase from their previous projection of $100,000 in April. Geoff Kendrick, head of foreign exchange and digital assets research at Standard Chartered, attributes this projection to higher miner profitability per Bitcoin. As miners can sell fewer Bitcoins while maintaining cash inflows, the net supply of Bitcoin is reduced, pushing prices higher. Kendrick highlights that the 12 largest listed miners, accounting for 20% of global Bitcoin mining, sold 106% of mined Bitcoins in Q1 2023, but this proportion is estimated to have dropped to 100% in Q2 due to lower mining costs and higher Bitcoin prices. If Bitcoin reaches $50,000, the share of newly mined Bitcoin sold is expected to fall to 20-30%, leading to a net annual reduction in Bitcoin selling. Bradley Duke, founder and chief strategy officer of crypto ETP provider ETC Group, supports the projection and believes that the approval of Blackrock's spot Bitcoin ETF application will drive significant demand for Bitcoin in the US and elsewhere, further propelling the price of Bitcoin.

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