Bitcoin, the world’s largest cryptocurrency, has been on a massive rally since the start of the year, with an 85% increase in its value. However, according to a Standard Chartered analyst, this surge is just the beginning of even greater gains in the future. The analyst, Geoff Kendrick, predicts that Bitcoin could climb another 60% this year, reaching $50,000 by the end of 2023.
Kendrick’s bullish view on Bitcoin is based on the potential for a continued increase in the price of the cryptocurrency, which would make it more rewarding for miners to accumulate and hold large amounts of Bitcoin. This would result in a reduced net supply of Bitcoin, further driving up its value.
The analyst also points out that the total supply of Bitcoin is scheduled to halve in April or May of 2024. This event, known as the halving, has historically been associated with significant increases in the price of Bitcoin. Kendrick believes that this supply reduction, combined with other factors such as the recent banking crisis, could unlock significant upside for Bitcoin next year.
Earlier this year, Kendrick had predicted that Bitcoin could reach $100,000 by the end of 2024. However, he now believes that this estimate is too conservative and sees a 20% upside to his previous target. This would imply that Bitcoin could hit $120,000 by the end of 2024.
In addition to the supply reduction and the banking crisis, Kendrick also mentions the potential approval of a Spot Bitcoin ETF by the Securities and Exchange Commission. Several asset managers, including BlackRock, have recently filed for a Bitcoin ETF, and its approval could further boost Bitcoin’s value.
Overall, the Standard Chartered analyst’s bullish outlook on Bitcoin suggests that the cryptocurrency has the potential for significant gains in the coming years. While the future of Bitcoin’s price is uncertain and subject to various factors, Kendrick’s analysis highlights the positive factors that could drive Bitcoin to new heights. Investors and enthusiasts will be closely watching to see if these predictions come true.