- Standard Chartered is increasing its optimistic prediction for Bitcoin's value, aiming for a price of up to $120,000 by the end of 2024. This projection is nearly four times the current price and reflects the bank's growing confidence in the cryptocurrency's potential. The upward revision comes as miners, who play a crucial role in the Bitcoin ecosystem, are reducing their token sales, leading to a potential supply shortage that could drive up prices.
- Bitcoin mining involves the energy-intensive process of using powerful computers to validate transaction data on the Bitcoin blockchain. Miners contribute to the network's security and functionality while earning Bitcoin as a reward for their computational efforts.
Why it matters
As miners become financially stronger, they have the capacity to hold onto their earned Bitcoin rather than selling it immediately. This reduced selling pressure can create a scarcity of supply, contributing to the anticipated price appreciation.
