Why Standard Chartered is bullish on Bitcoin


July 10, 2023


Olumide Adesina

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Bitcoin is expected to hit $50,000 this year and hit an all-time high in 2024, according to Standard Chartered. In a report cited by Reuters and other media outlets on July 10, the banking giant officially announced such forecast.

The mainstream narrative around the largest crypto asset by market valuation is rapidly changing as the United States undergoes a major shift in its institutional approach to Bitcoin. Last year, Standard Chartered predicted that the BTC price would drop to $5,000, but now expects it to double by the end of the year.

A report by global research leader and chief strategist Jeff Kendrick predicts that Bitcoin will likely reach $50,000 in 2023. Standard Chartered announced in April that, assuming the so-called “crypto winter” is over, Bitcoin could hit $100,000 by the end of 2024, but the bank’s top FX analyst said: Jeff Kendrick, one of the demands for "upside potential".

Kendrick believes supply dynamics are the reason as miners devote more and more resources to maintaining the network, so too will Bitcoin sales, creating a demand-supply imbalance that benefits the bulls.

“High miner profitability per Bitcoin mined means they can reduce sales while maintaining cash inflows, reducing net BTC supply, and increasing BTC price. means,” the report said.

Standard Chartered is already active in the crypto space, with its crypto custody platform Zodia raising $36 million in a Series A funding round in April. Big banks' predictions of a bright future for BTC prices are just one example of what one analyst recently dubbed the "BlackRock effect."

The ETF push, which has been joined by several major asset managers, has caused a reversal in how mainstream media treats Bitcoin.

Arthur Hayes, former CEO of the BitMEX exchange, disclosed that the steady pace of global technological improvements will increase the value of Bitcoin itself. Artificial intelligence (AI) is getting a lot of attention, and Hayes expects Bitcoin to be the currency of choice due to its unique properties.