Bitcoin will SURGE to $120,000 by the end of 2024 according to Standard Chartered – but one expert says it’s a number ‘plucked out of the air’

Standard Chartered has forecast bitcoin will trade as high as $120,000 (£93,000) by the end of 2024, as the bank reassessed a previous prediction as ‘too conservative’. 

Having previously predicted a 2024 peak of $100,000, the London-listed bank now thinks bitcoin could reach $50,000 by the end of this year as profits among the cyrptocurrency’s miners continue to grow. 

Bitcoin is up 80.5 per cent this year in dollar terms to $29,965, and 69 per cent against sterling to £23,200.

Standard Chartered Bank predict that Bitcoin could reach $50,000 by the end of the year and high as $120,000 by the end of 2024 

Bitcoin mining is the process in which transactions are made as new bitcoins enter the circulation in a blockchain.

The purpose of mining is to validate transactions to prevent fraud, as well as adding new blocks to the blockchain ledger. 

Bitcoin mining involves using a powerful computer to solve complex hash puzzles and in turn the first user to solve the puzzle is rewarded with bitcoins.

Standard Chartered said: ‘Based on their profitability, miners decide how much of the new BTC supply… reaches the market. 

‘Increased miner profitability per BTC mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher.’

The 12 largest listed miners sold 106 per cent of newly mined bitcoin in the first quarter this year, with the figure pushed above 100 per cent as a result of stockpiles, according to the bank.   

Standard Chartered expects this figure to fall ‘slightly below’ 100 per cent for the second quarter, but a bitcoin price of $50,000 would see this fall to 20 to 30 per cent. 

It said: ‘That is a net annual reduction in selling of BTC 250,000 – a large number relative to bitcoin market turnover. 

‘We previously predicted that this driver would add $10,000 to the bitcoin price; we now think this estimate is too conservative, and we therefore see upside to our end 2024 target of around $120,000.’

However, not all investors are as confident as Standard Chartered on bitcoin’s trajectory. 

Crypto expert Glen Goodman told This is Money the bank’s $120,000 prediction ‘feels like a number plucked out of the air’.

Goodman said: ‘Standard Chartered laid out a solid bullish case, but there are some major red flags for bitcoin we can’t ignore. 

‘US financial regulators are pummeling crypto relentlessly with court cases and investigations. 

‘Unless they have a change of heart, it’s going to get harder and harder to do crypto business in the world’s richest country. 

‘Also, many economists expect a recession next year, which could seriously depress asset markets including stocks and n=bitcoin. 

‘Though if a recession encourages central bankers to reduce interest rates, that could eventually give stocks and bitcoin a boost. 

‘The bottom line is bitcoin is at the mercy of future events. Some, like 2024’s halving, are known, others, like possible recession, are unknown. So $120,000 feels like a number plucked out of the air.’

This post first appeared on Dailymail.co.uk