Bitcoin’s price is likely to reach $50,000 by the end of this year and has upside above $100,000 by the end of 2024, according to Geoff Kendrick, head of crypto research at Standard Chartered Bank.
In a previous note in April, Kendrick said he expected bitcoin BTCUSD,
Kendrick on Monday raised his target for the crypto asset even further, saying he expects more upside from a likely reduction in miners’ sale of bitcoin.
Bitcoin miners validate transactions on the blockchain and receive some of the crypto as a reward.
“As well as maintaining the Bitcoin ledger, miners play a key role in determining net supply of newly mined BTC. Specifically, based on their profitability, miners decide how much of the new BTC supply reaches the market,” Kendrick wrote.
“Increased miner profitability per BTC mined means they can sell less while maintaining cash inflows, reducing net BTC supply and pushing BTC prices higher,” according to Kendrick.
With the recent bitcoin price, miners have been selling almost all new bitcoins they mined, Kendrick wrote. However, if bitcoin price rises to about $50,000, the share of newly mined bitcoin being sold could fall to 20% to 30%, according to Kendrick.
Bitcoin is trading above $30,000 on Monday, up over 80% year-to-date, while still down over 50% from it all-time high of $68,990 in 2021, according to CoinDesk data.
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Frances Yue covers the cryptocurrency market for MarketWatch.
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