Standard Chartered Bank raises bitcoin price target to $120,000 by 2024
The world’s largest cryptocurrency by market value Bitcoin (BTC) could reach new high in the coming years according to a research report by Standard Chartered Bank.
The British multinational bank revised its bitcoin price forecast from $100,000 to $120,000 by the end of 2024 citing increased miner profitability as one of the main driver.
Miners are the entities that secure the bitcoin network and generate new bitcoin. The report said that higher miner profitability per bitcoin mined would reduce the net supply of bitcoin in the market as miners would need to sell less of the output to cover the cost.
“This creates positive feedback loop for BTC price” wrote Geoff Kendrick, head of FX and digital assets research at Standard Chartered Bank.
The bank also raised its end 2021 price target for bitcoin from $50,000 to $55,000 reflecting the strong performance of the cryptocurrency this year. Bitcoin has gained 80% since january and currently trading around $30,100.
The report acknowledged that bitcoin faces several challenges and risk such as regulatory uncertainty, environmental concern and competition from other digital assets. However it also highlight the potential benefit of bitcoin as store of value, medium of exchange and hedge against inflation.
“Bitcoin is more than just a cryptocurrency it is a new asset class that offers unique combination of features that could appeal to a wide range of investors” the report concluded.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. The views expressed are those of the author and do not necessarily reflect those of Standard Chartered Bank or any other entity. The source of the information is from internet and may not be accurate or complete.
