As per a report by analysts at Standard Chartered, Bitcoin might hit $50,000 during the year and $120,000 by the year’s end of 2024 as crypto miners start to stockpile the digital asset. By the finish of next year, the British bank originally predicted bitcoin would surpass the $100,000 level, but Standard Chartered economist Geoff Kendrick now claims there is a 20% “upside” to the initial prognosis.
The bank’s reasoning for the price estimate is that miners, who are currently producing the 900 new bitcoins every day, will eventually need to sell fewer of them to cover costs. The amount of bitcoins mined in April and May of 2024 will be cut in half as a result of an internal supply and circulation mechanism that gradually restricts supply in order to preserve the currency’s value.
The proportion of newly generated coins being sold should fall to 20 to 30%,” Kendrick stated in the paper, if the price of bitcoin increases to about $50,000 as predicted by the end of 2023.
Increasing mining profitability per BTC (bitcoin) produced means they can sell less but keep inflows of cash, which reduces net BTC supply and forces bitcoin prices higher.” As a result of the United States’ willingness to embrace bitcoin mining, large U.S.-listed miners have increased.
The price of the digital asset has increased by more than 80% so far this year and is currently about $30,384, which is significantly less than its peak of $69,000 achieved in November 2021.
The price predictions in the bitcoin
Following then, the cryptocurrency industry has been shaken by the collapse of FTX and Binance’s decision to suspend U.S. deposits following the Securities & Exchange Commission’s (SEC) accusation that the exchange was running a “web of deception.
The greatest asset in the market, bitcoin, recently traded beyond the $31,000 mark and has gained support from traditional financial institutions like BlackRock, which registered a proposed Bitcoin ETF with the Securities and Exchange Commission in June. At the same time, exchanges for digital assets have come under scrutiny.
But Bitcoin’s momentum first paused, then it started to decline. Investors were encouraged to convert from holding bitcoin to keeping treasury bills when inflation decreased and interest rates remained high. Many financial institutions have decreased the amount they invest in digital assets as a result of regulators’ increased monitoring of the cryptocurrency sector.
The current level of 44 on the worry and Greed Index for Bitcoin indicates market worry. That represents a substantial improvement over a month earlier, when the stock market index reached 66 and indicated greed. Volatility, trade volume, social media mood, and search patterns are all taken into account by the index.
At the same time, proposed legislation that would clarify US regulatory requirements for cryptocurrency investments may help investors feel less uneasy. Even if Bitcoin is governed as an investment in the US, clearer regulations might tempt new investors to invest in cryptocurrency and hold Bitcoin.
But we don’t anticipate a sharp increase in Bitcoin prices in 2024. Since Bitcoin was unable to maintain its breakout in 2023, many investors would be reluctant to invest all-in on the cryptocurrency since these good trends take time to materialize.
Rates may decline even lower, particularly if inflation stays low through 2024. Increased investors might start investing in cryptocurrencies for the very first time if crypto altcoins are subjected to increased regulation; several of these individuals are likely to already own some Bitcoin. So this can be predicted about the price trends in bitcoin.
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