The UK-based British multinational bank Standard Chartered forecast that Bitcoin (BTC) will break the $120 000 resistance level in Q4 of 2024. The Standard Chartered report demonstrated that the BTC price will increase by 300% from the $30 000 current reading.
In an interview with Reuters, the Standard Chartered group explained that Bitcoin will gather its bullish steam due to the current mining activity. The report mentioned that the miner’s activities, such as hoarding more Bitcoin supply, would contribute to increase BTC prices.
Will Bitcoin Reach $120K Before 2025?
A report from Standard Chartered FX analyst Geoff Kendrick revealed that an increase in miners’ profits per Bitcoin mined signifies that the miners can sell BTC at a lesser price. This will enable the miners to maintain a substantial cash inflow, minimizing the net BTC supply and propelling Bitcoin prices further. Notably, the miners are rewarded with a constant number of available BTC per block, which equates to 6.25.
As of this publication, Bitcoin prices increased by 82% from $16600 in January to $ 30,280 in July. The bullish trend has supported the industry to yield measurable gains from January.
Unlike in 2022, when the BTC established a dribbling momentum, the price decrease compelled most miners to sell off their coins in the market. Last July, crypto miner Core Scientific disposed of over 7000 Bitcoins worth $165 million to sustain its operation cost.
Before then, the Riot mining company had dumped a measurable amount of Bitcoin, contributing to the decrease of the BTC prices to below $18000.
Glassnode data revealed that Bitcoin had exchanged hands from short-term to long-term holders in the past few months. A long-term holder is an investor who holds the coin for more than 155 days, while short holders are traders actively seeking to sell their coins.
Will Bitcoin Maintain its Bullish Momentum?
Interestingly, the BTC’s recent movement has given the miners an optimistic belief that Bitcoin would remain in green zone. The Standard Chartered analyst argued that miners are actively disposing of 100% of their newly mined coins to cater for the throbbing operation cost.
Kendrick demonstrated that if the BTC prices jump to $50000 in late December, the miners might not be interested in selling their coins. He projects miners will opt to hold their coins to reduce the supply and spark a bullish momentum in the market.
Kendrick anticipates that with an upsurge in BTC prices, miners’ sell-off rate might decrease by 20% to 30%. He added that if BTC prices spike, miners will reduce the amount of Bitcoin on sale per day from 900 to approximately 180-270.
Moreover, the analyst estimated that miners selling would reduce from 328,500 to 65,700-98,550 annually. This implies that the BTC in supply will also reduce to around 250 000 in a year.
Elsewhere market critics believe that if the US market regulators approve spot exchange-traded funds (ETF), Bitcoin prices will steadily increase. In June, asset management firm BlackRock filed for the spot Bitcoin ETF. The US regulators are expected to provide their response to BlackRock’s filing.
According to CoinMarketCap, Bitcoin native token BTC is exchanging hands at $30,420.07, a 0.85% increase in a day. The trading volume increase by 58.97% in the last 24 hours to reach $15,085,368,036.
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