Is it time to invest in Bitcoin again? Standard Chartered, a U.K. multinational bank, predicts the price of Bitcoin will climb to $50,000 this year and all the way to $120,000 by the end of 2024. The figures are an upward revision of an earlier bullish report by the bank and would amount to a 300% jump from its current price of around $30,000.

So far in 2023, news has made it hard to remember that crypto is not in fact a scam but a 15-year-old project whose most high-profile asset—Bitcoin—is receiving bullish endorsements from major banks. It’s also worth remembering that secondly, the price floor for Bitcoin during a downturn will always be higher than the previous one. For instance, the price sunk to around $16,000 following the FTX debacle last year. Compare that with $3,000 after the popping of the 2017 bubble or $300 in 2014 after the Mt. Gox hack.

Standard Chartered’s prediction stems from a thesis that Bitcoin miners are making more profits, so they will sell fewer of the tokens they mine to raise cash. Fewer tokens dumped on the market means more scarcity, and that means higher prices. This scarcity trend is also going to accelerate during the next “halving” event in 2024, which will see the number of new Bitcoins minted every day drop from around 900 to more like 450. By the time that occurs, a lot of the scarcity will be priced in, but until then it’s easy to see how the price will climb.

For now, the prediction is simply a prediction, but one that arguably is worth keeping an eye on. 

Categorized in: