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International bank Standard Chartered has predicted that Bitcoin (BTC) could close the year at as high as $50,000 and reach $120,000 by next year, according to a July 10 report by Reuters.
This prediction aligns with that of Matrixport, a crypto financial services platform, which forecast in a report shared with CryptoSlate on July 6 that BTC’s price would reach $125,000 by 2024.
Markus Thielen, head of research and strategy at Matrixport, stated:
“If history is any guide, then there is now a 100% probability that by the end of 2024, Bitcoin will experience another massive bull market with a price target of $125,000 (+310%).”
Standard Chartered highlights miners’ role
Standard Chartered noted the critical role BTC miners could play in this potential upward price movement.
According to Geoff Kendrick, one of the bank’s FX analysts, BTC’s price could increase because miners’ profitability has risen, reducing the pressure on them to sell. Kendrick reportedly said:
“Increased miner profitability per BTC (bitcoin) mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher.”
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Last year, BTC miners were among the cohorts severely affected by the record-low market conditions that led to the collapse of several crypto firms, including FTX.
However, BTC miners appear to have bucked the trend this year, with many in better financial health. Ethan Vera, COO at Luxor Technologies, estimated that miners’ debt has reduced to between $4.5 billion and $6 billion, down from the $8 billion recorded in 2022.
Most miners who sold their BTC this year aimed to secure profits by taking advantage of the recent price surge. According to CryptoSlate’s data, BTC has grown by over 70% on a year-to-date basis.
Institutional interest in BTC soars
Besides miners, traditional financial institutions could also play an essential role in BTC’s price movement.
In June, the industry witnessed a flurry of spot BTC ETF applications from legacy institutions triggered by BlackRock’s application. Furthermore, crypto ETPs have recorded three consecutive weeks of inflows, according to CoinShares.
Since then, positive market sentiment has returned, with the flagship digital asset rising to a yearly high of $31,500 before retracing to its current levels of $30,279 at the time of writing.
The post Standard Chartered and Matrixport Forecast Bitcoin to Reach $120,000 Next Year appeared first on CryptoSlate.
