Standard Chartered recently released a research suggesting that Bitcoin price could reach $50,000 by the end of this year and reach $120,000 in the following year. These predictions have drawn considerable attention within the crypto community.
Standard Chartered had previously published a bullish end-2024 forecast of $100,000 for Bitcoin back in April, indicating their belief that the “crypto winter” was over. Geoff Kendrick, one of the bank’s top FX analysts, recently mentioned that there is a 20% “upside” to their previous call. Kendrick argues that increased miner profitability per BTC mined would result in reduced net BTC supply and push prices higher.
Increased miner profitability per Bitcoin mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher –Kendrick said.
Current State of Bitcoin
Bitcoin had gained a 80% surge since the beginning of this year. Tho, its current value, just above $30,200, remains less than half of its peak of $69,000 reached in November 2021. The crypto sector endured a significant setback in 2022 as central banks raised interest rates and several crypto firms faced difficulties, such as the collapse of the FTX exchange. Its fair to mention that, the rebound of the crypto market has been fueled, in part, by the collapse of traditional banks this year.
Bradley Duke, Founder and Chief Strategy Officer at ETC Group, acknowledges the difficulty of predicting precise market moves. Duke believes that the case for a substantial increase in Bitcoin’s price in the foreseeable future is compelling. Duke points out that while the supply side of the equation remains fixed, with a hard cap of 21 million bitcoins, the demand side is poised to grow significantly.
Duke highlights the recent news of BlackRock’s filing for a spot Bitcoin ETF in the US, expressing optimism about its potential approval. Given BlackRock’s past success rate, such an approval would unleash a pent-up demand for Bitcoin in the US and elsewhere, allowing it to flow into the market. It is logical, according to Duke, that the price of Bitcoin would respond proportionately to this influx of demand.
With Blackrock filing for a spot Bitcoin ETF in the US, given their past success rate, the belief is that this application is likely to be approved. This will enable massive pent-up demand for Bitcoin in the US and elsewhere to finally be able to flow into the market, and it’s logical that the price of Bitcoin respond in a proportionate manner. – Duke commented.
Word on Twitter
In addition to the perspectives of Standard Chartered and Bradley Duke, it’s worth noting what is going on crypto Twitter. Analysts called “Rager”, recently shared his thoughts on Bitcoin’s price. Rager stated that $120,000 for Bitcoin will now become a popular target, because of the report from Standard Chartered. He further mentioned that $120,000 and a 700% to 800% return on investment (ROI) from the market bottom have been his initial Bitcoin targets for quite some time, and if that level is reached, he would consider fully exiting his position.
However, Rager disagrees with the timing of these price levels, as his opinion that 2025 will be the year when Bitcoin reaches such heights.
$120,000 $BTC will now be a popular target since Standard Chartered shared this on Monday
$120k and a 700% to 800% ROI from market bottom has been the initial Bitcoin target for me for a long while and where I would fully exit if hit
But I disagree with timing, IMO 2025 will… pic.twitter.com/rdExgp8XOa
— Rager (@Rager) July 11, 2023
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