Standard Chartered Predicts Bitcoin’s Soaring Price: $50,000 This Year, $120,000 in 2024

Standard Chartered, a leading UK-based bank, has made bold predictions about the future price of Bitcoin (BTC), forecasting a surge to $50,000 this year and an astonishing $120,000 by the end of 2024. The bank suggests that such price increases could incentivize miners to accumulate block rewards, leading to a reduction in coin circulation.

The bank’s analysis points to several key factors driving the current bull market and the potential for further growth. One significant factor is the growing influence of Asian traders in the cryptocurrency markets, as regulations in the region continue to mature. The Hong Kong Monetary Authority (HKMA) has exerted pressure on Standard Chartered to offer services to crypto businesses, and the introduction of new regulations has allowed licensed exchanges to list select cryptocurrencies, including Bitcoin, Ethereum, and Cardano.

Bitcoin Faces Liquidity Challenge as Market Makers Exit, Hindering Growth

Standard Chartered’s partnership with US exchange Coinbase to launch crypto trading in Singapore further demonstrates the bank’s commitment to embracing the crypto industry. These developments indicate a positive trajectory for Bitcoin and the wider crypto market in Asia.

Additionally, the upcoming Bitcoin halving, expected in spring 2024, presents another catalyst for accumulation and potential price appreciation. During the halving, which occurs every four years, the rewards for miners who successfully find and broadcast a Bitcoin block are halved. Next year’s halving will reduce mining rewards to 3.125 BTC per block. As a result, Standard Chartered predicts that the scarcity caused by the halving will push the price of Bitcoin even higher, reaching $120,000 by the end of 2024.

Despite these optimistic predictions, Bitcoin currently faces a challenge in terms of liquidity. The recent departure of two major market makers, Jump Crypto and Jane Street, has caused a sharp decline in liquidity in the market. Market makers play a crucial role in matching buyers and sellers, thereby sustaining rallies. The lack of liquidity hindered Bitcoin’s surge following the US banking crisis in the first quarter of this year.

However, the situation may soon change with the inflow of capital from prominent financial firms. BlackRock, the world’s largest investment manager with over $10 trillion in assets under management, recently filed an amended application with the US Securities and Exchange Commission (SEC) to launch a spot Bitcoin exchange-traded fund (ETF). This move could provide additional liquidity and market surveillance. Similarly, Fidelity Investments has re-filed an application for a spot ETF following an initial rejection by the SEC.

While Bitcoin’s liquidity concerns persist, Standard Chartered’s predictions and the interest from major financial institutions suggest a positive outlook for the cryptocurrency. With the potential for increased accumulation and support from institutional investors, Bitcoin’s price trajectory appears to be on a remarkable upward trend.

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