Bitcoin Could Reach USD 50,000 This Year, Forecast of Standard Chartered

In terms of market capitalization, the price of Bitcoin, the largest cryptocurrency, can reach $ 50,000 this year and $ 1,20,000 by the end of next year. International bank Standard Chartered believes that the recent boom in bitcoin could limit its miners’ supply.

However, before this Standard Chartered had announced that by the end of next year bitcoin was estimated to reach one million dollars. It said that the phase of recession in the crypto market has passed. Geoff Kendrick, one of the principal FX analysts at Standard Chartered, said that this estimate could be increased by 20 percent. In a report, Geoff said, “As the profit in mining per bitcoin increases, miners can maintain cash flow by selling less. This will reduce the supply of bitcoin and its prices will accelerate.”

The price of bitcoin is slightly above $30,200. This is less than half of its peak level of $69,000 in November 2021. last year crypto Billions of dollars were lost in the market. The major reasons behind this were the increase in interest rates by the Central Banks and the bankruptcy of many firms in this segment like crypto exchange FTX. This year, the market declined again due to the collapse of business due to heavy losses of some banks. Standard Chartered says that the reason for the increase in the price of bitcoin will be the miners selling less to cover their costs. The electricity used to run powerful computers accounts for a major portion of their cost. Geoff pointed out that miners were selling all of their new coins until recently. If the price of bitcoin rises to $50,000, they will only sell 20-30 percent.

The sentiment in the crypto market has also been affected by reports of MicroStrategy buying an additional $374 million in bitcoins last month. Bitcoin faces resistance at $30,750. Recently BlackRock has filed for a bitcoin ETF and Deutsche Bank has sought a license to provide crypto custody services. This has also created a positive trend in the market. Regulations are being made for cryptocurrencies in many countries. This can increase the number of investors in the crypto market.