The Anticipated Rise: Bitcoin’s Projected Value at $120,000
According to a new report by UK multinational bank Standard Chartered, the price of Bitcoin is predicted to reach $50,000 this year and potentially even $120,000 by the end of 2024. These figures are an upward revision from a previous bullish report by the bank. This would represent a 300% increase from Bitcoin’s current price of around $30,000. The report from Standard Chartered is in line with other major banks, such as Goldman Sachs, who previously predicted a $100,000 price for Bitcoin in early 2022.
The author notes that despite the recent regulatory crackdowns and negative news in the crypto industry, Bitcoin is not a scam but a 15-year-old project that continues to gain endorsements from major financial institutions. They believe that while things are never as good as they seem during bull markets, they are also not as bad as they seem during bear markets. The price floor for Bitcoin and potentially Ethereum during a downturn has been consistently higher than previous ones, indicating an increasing level of stability.
The prediction made by Standard Chartered is based on the thesis that Bitcoin miners are making more profits, and therefore, they will sell fewer of the tokens they mine in order to raise cash. This reduced supply of tokens being dumped on the market creates scarcity, leading to higher prices. This trend of scarcity is expected to accelerate during the next “halving” event in 2024, when the number of new Bitcoins minted each day will decrease. Although there are uncertainties and potential shocks that could occur in the market, the author believes that, for now, Standard Chartered’s prediction seems plausible.
In conclusion, while it is impossible to predict with certainty whether Bitcoin will reach $120,000 by the end of 2024, the author believes that the prediction from Standard Chartered is based on a sensible thesis and is more likely to be accurate than not. Despite potential risks and uncertainties, the overall outlook for Bitcoin remains positive, and the author suggests that the industry is more likely to experience another bull market than a complete shutdown.