According to Geoff Kendrick, head of crypto research at Standard Chartered Bank, Bitcoin’s price is expected to surge to $50,000 by the end of this year. Kendrick further speculates that the cryptocurrency could potentially surpass $100,000 by the end of 2024.
In April, Kendrick had already noted the possibility of Bitcoin reaching $100,000 by 2024. He cited various factors contributing to this upward trend, such as turbulence in the banking sector, stability in risky assets, improved profitability for Bitcoin miners, the upcoming Bitcoin halving event, progress in global regulation, institutional investor interest, and a decline in volatility.
Recently, Kendrick raised his price target for Bitcoin due to expectations of a reduction in miners’ sale of the cryptocurrency. Miners play a vital role in determining the net supply of newly mined Bitcoin. As their profitability increases, they have the ability to sell less Bitcoin while generating sufficient cash inflows. This reduction in supply, combined with demand, is likely to drive Bitcoin prices higher.
Currently, miners are selling nearly all of the new bitcoins they mine. However, Kendrick suggests that if the price of Bitcoin were to reach around $50,000, the percentage of newly mined Bitcoin being sold could drop significantly to approximately 20% to 30%. This decrease in supply would help support Bitcoin’s price momentum.
As of now, Bitcoin is trading above $30,000 and has achieved a remarkable year-to-date increase of over 80%. However, it is important to note that it is still down over 50% from its all-time high of $68,990 reached in 2021 (according to CoinDesk data).
Given these exciting forecasts and recent market performance, it will be intriguing to see how Bitcoin continues to evolve and capture the attention of investors in the coming years.