Standard Chartered has made a bold prediction about the future of Bitcoin (BTC), suggesting that the BTC price could rise 300% and reach $120,000 by the end of 2024.
This prediction comes as a result of the expected decrease in token sales by Bitcoin miners.
Standard Chartered analyst Geoff Kendrick predicted earlier this year that Bitcoin could reach $100,000 next year. But he now believes that this estimate may be too conservative, especially considering the profitability of Bitcoin miners.
In a recent note, Kendrick reiterated his end-2024 Bitcoin price target of around $100,000, but added that there could be potential upside due to reduced miner sales. In another email, he noted that his $120,000 price target is valid, representing an upside of approximately 300% from current levels. He also expects Bitcoin to rise 67% to $50,000 this year.
Kendrick estimates that just under 100% of all Bitcoin produced by miners was sold in the second quarter. However, he expects miners to start selling less over time. This usually happens when the price of Bitcoin exceeds the average all-cash cost of mining.
“If the Bitcoin price averages $50,000 in the first quarter of 2024 as we estimate, the 'Bitcoin minus all cash costs' calculation will increase to $30,000,” Kendrick wrote and added:
“On this basis, selling just 27% of Bitcoin mined in Q1 2024 would yield the same level of absolute cash surplus as selling 100% in Q2 2023.”
*This is not investment advice.