Bitcoin, the market dominator, as we like to address it, is expected to reach $50,000 by the end of 2023 and $120,000 by the end of 2024, as per Standard Chartered’s latest revised prediction. Standard Chartered has been bullish on Bitcoin recently, and in July 2023, they revised their price prediction for the cryptocurrency.
Why is Standard Chartered so Bullish on Bitcoin?
The bank’s analysts cited several factors for their bullish outlook, including:
The Increasing Profitability of Bitcoin Mining
A possible explanation for being optimistic about Bitcoin is that Bitcoin mining is becoming more profitable. To learn more about Bitcoin mining, click here. When the price of Bitcoin goes up, so do the benefits of mining. Analysts at the bank say that because Bitcoin mining is becoming more profitable, more miners are holding on to their coins instead of selling them. This will cause the net supply of BTC to go down, driving prices up even more.
Rising Institutional Adoption of Bitcoin
Another reason to be bullish about Bitcoin is that more institutions are adopting it. Several big banks, including HSBC, have started selling Bitcoin-related goods and services in the past few months. This includes investment companies, banks, and payment processors. Recent news about Bitcoin exchange-traded funds (ETFs) has also stirred the market, drawing more small investors to the BTC growth. As more companies start to invest in Bitcoin, the demand for Bitcoin will likely increase, which could increase the price.
Rampant Demand for BTC as a Store of Value
Lastly, the demand for Bitcoin as a store of value is growing, strengthening the bullish view of Bitcoin. Bitcoin is a digital currency, a security, an asset, or a decentralised way to keep value. This means that the government doesn’t have control over it. Because of this, Bitcoin is a good investment for people who want to protect their money from inflation and other economic risks. As investors look for investments that can protect their money from inflation and other economic risks, the demand for Bitcoin as a store of value is growing. You can also check our blog on how BTC helps hedge your income against inflation.
Overall, Standard Chartered’s bullish outlook for Bitcoin’s price is based on factors suggesting that the cryptocurrency is poised for further growth in the coming years. However, it’s important to remember that price predictions are just predictions. There’s no guarantee that Bitcoin will reach $50,000 by the end of 2023. However, you should check our Thematic Investment Plan to help you make systematic investments and surf your way into the market!