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The world’s largest bank, Standard Chartered, has updated its forecast for Bitcoin’s price, predicting a considerable increase in the value of the digital currency. The bank has previously forecast a decrease in the price of BTC as low as $5,000. But it now projects that Bitcoin will cost $50,000 by the end of 2023, a significant hike.
The positive prognosis, according to Standard Chartered’s global head of research and chief strategist Geoff Kendrick, is due to supply dynamics in the Bitcoin network. The quantity of BTC that miners sell is falling as they devote more energy to maintaining the network. It is anticipated that this mismatch between supply and demand would benefit the bulls and drive Bitcoin’s price up.
According to Kendrick, miners may sell fewer coins while still making money thanks to the increasing profitability for miners per BTC created. The Standard Chartered forecast for a bullish price momentum is aided by this decrease in net BTC supply. The report states, “Increased miner profitability per BTC (bitcoin) mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher.”
Through its bitcoin custody platform, Zodia, Standard Chartered has previously shown that it is active in the cryptocurrency market. In April, the platform was able to secure $36 million in a Series A fundraising round, demonstrating the bank’s dedication to looking into potential prospects in the cryptocurrency market.
Standard Chartered’s updated BTC price projection reflects the shifting narrative surrounding the largest cryptocurrency in the world as institutional attitude about Bitcoin continues to change, with notable adjustments evident in the United States. A more optimistic perspective for Bitcoin’s future performance is highlighted by the forecasted rebound to $50,000 in 2023 and the anticipation of new all-time highs in 2024.