Standard Chartered is ramping up its bullish Bitcoin prediction, targeting as much as $120,000 by the end of 2024 — almost quadruple the current price — as increasingly cash-rich miners reduce sales of the token.
Bitcoin mining is an energy-intensive process in which miners use powerful computers to validate transaction data on the Bitcoin blockchain, keeping the network running and earning the token as a reward.When Bitcoin prices are higher, miners can cover costs selling fewer Bitcoin, holding on to more in the expectation of higher prices in the future.
That underestimated the impact higher miner profitability would have on reducing the supply of Bitcoin in the marketplace, they now say, and expect the price to hit $50,000 by the end of this year before jumping to as much as $120,000 in 2024. Adding to supply pressure is an upcoming “halving” in 2024, a preprogrammed event that will reduce the supply of Bitcoin rewards available to miners from about 900 per day to about 450. Occurring every four years, it keeps Bitcoin below its limit of 21 million tokens.
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