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- In a recent report, Standard Chartered has made two major predictions for Bitcoin and Ethereum.
- The firm sees Bitcoin hitting a $50,000 price mark, while Ethereum is predicted to climb up to $8,000.
As the market settles into the last quarter of the year, predictions for Bitcoin and other leading assets are pouring in from market players and institutions alike. One such institution that has made an extremely bullish call for Bitcoin and Ethereum is Standard Chartered.
Standard Chartered provides a myriad of international banking services across the form of the world’s most dynamic markets. Its position on Bitcoin’s potential movement in the long term comes at a time when the market is at a crucial decision-making stage.
Bitcoin could see its current price more than double, and surge up to as high as $50,000 this year, according to Standard Chartered. The bullish predictions were made on Sunday, and it further cited the recent upsurge in Bitcoin’s price as a significant catalyst for the upward rally.
Notably, Bitcoin has seen its value surge by 80% since the year began. While this is a significant recovery for the asset, it is still yet to retest its all-time high of $68,789. Siding the time of this report, Bitcoin is trading at $26,670.
The firm is asserting that this recent jump in Bitcoin’s price could influence Bitcoin miners to increase their Bitcoin holdings. This will in turn affect the existing supply of Bitcoin, by reducing it by a sizable margin, which could potentially boost demand.
Standard Chartered: Ether could tap $8,000 and progressively surge
Speaking to this effect, Geoff Kendrick, a leading FX analyst at the firm said the following in a report;
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.
In addition to the forecast, Standard Chartered also made a bullish call for Bitcoin in 2024. The apex cryptocurrency could surge to $120,000 by the end of 2024, the institution added.
Kendrick also explained that Bitcoin miners have been selling 100% of new coins. Should prices climb up to $50,00, miners are likely to sell 20-30% of their holders.
As the analyst went on to explain;
It is the equivalent of miners reducing the amount of bitcoins they sell per day to just 180-270 from 900 currently. Over a year, that would reduce miner selling from 328,500 to a range of 65,700-98,550 – a reduction in net BTC supply of roughly 250,000 bitcoins a year.
On the other hand, Kendrick predicts that Ethereum could hit $8,000 in the near term. This forecast is a rather modest call for the long-term price prediction of $26,000 to $35,000 in the long-term. Ethereum (ETH) trades at $1,529 at press time. The asset has shed more than 5% of gains attained over the last 7 days.
