Geoff Kendrick of Standard Chartered wrote on Monday, "Increased miner profitability per BTC mined means they can sell less while maintaining cash inflows, reducing net BTC supply, and pushing BTC prices higher."
Miners use powerful computers to validate transaction data on the Bitcoin blockchain, keeping the network running and earning the token as a reward in the energy-intensive process known as Bitcoin mining.
They benefit by selling the granted Bitcoin into the market. At the point when Bitcoin costs are higher diggers can take care of costs selling less Bitcoin, clutching more in the assumption for greater costs from here on out.
Predictions of the bold price of Bitcoin are not new. Among the most bullish is from Ark Speculation The executives' Cathie Wood, who multiplied down on her expectation that Bitcoin will hit $1 million by 2030 as of late as November.
In April, Standard Chartered predicted that the price of a Bitcoin coin could reach $100,000 by the end of the following year. They now assert that this underestimated the impact that increased miner profitability would have on decreasing the quantity of Bitcoin available on the market. As a result, they anticipate that the price will reach $50,000 by the end of the year and then soar to as much as $120,000 in 2024.
"They [miners] have been selling all new BTC at recent prices; Kendrick wrote, "We think they would sell 20%-30% at $50,000."
A planned "halving" in 2024 that will reduce the number of Bitcoin rewards available to miners from approximately 900 per day to approximately 450 will increase supply pressure. It keeps Bitcoin below its limit of 21 million tokens and occurs every four years.
As of 1:40 p.m. in New York, the most valuable asset in the cryptocurrency industry is Bitcoin, trading at $30,309. Despite its 83% increase this year, it remains well below its November 2021 record high of nearly $69,000.
BlackRock Inc., which has a near-perfect track record of filing for and receiving approval for ETFs, submitted an application for Bitcoin exchange-traded funds in the United States, which coincided with its most recent rise.