Cryptocurrency experts name the main condition for bitcoin’s growth to $ 120,000

Financial experts from Standard Chartered have raised their forecast for the price of bitcoin in 2024 from $ 100,000 to $ 120,000. The catalyst for this adjustment is an increase in mining profitability. Standard Chartered suggests that miners will need to sell fewer BTC to cover operating costs, primarily energy consumption.

«Increasing miners' profitability for mining BTC means they can sell less, while maintaining the flow of money, reducing the net supply of BTC and increasing cryptocurrency prices,» the analysts explain.

Standard Chartered emphasizes that recently, miners have been selling 100% of their coins. However, if BTC costs $ 50,000, miners will only need to sell 20−30% of new bitcoins. The upcoming halving, which will take place in 2024, will also help reduce this figure, financiers are sure.

«Within a year, it will reduce miner sales from 328,500 BTC to the range of 65,700−98,550. This means a reduction in the net supply of BTC by about 250,000 bitcoins per year,» the experts said.

The main cryptocurrency started 2023 with positive dynamics — in mid-April, BTC was already above $ 19,000, which was the highest since November 2022. In April, bitcoin jumped to $ 29,000, updating its 10-month high. In early July, BTC surpassed $ 31,000 and updated its annual high. Overall, the price of BTC has increased by 80% since the beginning of the year. However, this is still significantly less than the BTC high of $ 69,000 recorded in November 2021.

It is worth noting that JPMorgan analysts also predict the growth of the main crypto asset, however, in a smaller range. They believe that the BTC price should return to the values of March 2022 (the BTC rate was within $ 39,500). The reason is that the coin is seen as an alternative way to preserve savings. The upcoming BTC halving will also contribute to the price increase.

As of the morning of July 11, the flagship cryptocurrency has grown by almost 1.7% and is worth $ 30,591. The market capitalization of the coin is $ 640.3 billion, and daily trading transactions exceeded $ 14.7 billion. The market share of BTC is 49.9%.