- Standard Chartered analyst Kendrick said that a positive cycle created by Bitcoin miners could push the price of the token above already high predictions.
- Miners mostly sell Bitcoin to cover their costs. However, as the price increases and previous debt problems in the industry decrease, miners are selling less Bitcoin.
- He also pointed out that miners have no reason to sell the token other than the price movements of Bitcoin. Part of this comes from the culture surrounding the industry.
Standard Chartered analyst Geoff Kendrick is bullish on Bitcoin this year and said the price could reach $100,000 by 2024.
Geoff Kendrick Predicts BTC Price
Standard Chartered analyst Geoff Kendrick said that a positive cycle created by Bitcoin miners could push the price of the token above already high predictions. Miners usually sell fewer tokens when the price rises, and this suffocating trend led him to say that it could reach $120,000 with a 300% increase earlier this month.
In an interview, Kendrick was asked, “If higher prices cause miners to sell fewer tokens, further increasing prices, will higher prices trigger a positive feedback loop that exceeds $120,000 for Bitcoin?” and Kendrick said the following;
“Yes, so the idea of it becoming a self-fulfilling prophecy is probably a very important factor.”
Miners mostly sell Bitcoin to cover their costs. However, as the price increases and previous debt problems in the industry decrease, miners are selling less Bitcoin. Another positive factor is the upcoming halving in 2024, which halves the block reward. This has historically limited the supply of Bitcoin and led to price increases.
Kendrick said the following about the halving;
“If other factors like the upcoming halving cycle are added, then this cycle continues.”
He also pointed out that miners have no reason to sell the token other than the price movements of Bitcoin. Part of this comes from the culture surrounding the industry, as many miners hold onto Bitcoin with the expectation that it will eventually reach extremely high levels.
“So basically, it’s a highly leveraged game of starting a company with cheap prices, having cheaper electricity and other things, and then holding onto it with the expectation that Bitcoin will eventually reach massive high levels.”
Kendrick is bullish on Bitcoin this year and said it could reach $100,000 by April 2024, showing several factors other than miner profitability. Examples include Bitcoin’s safe haven reputation, regulatory compliance, institutional interest, the decline of alternative currencies, and less volatility.
Kendrick Mentions BlackRock
For example, BlackRock’s desire to create a spot Bitcoin ETF indicates an increase in demand from the investment firm’s clients, and the end of the Fed’s interest rate hike cycle will partially support Bitcoin.
Another factor that Kendrick will reconsider is the idea that the decline in cryptocurrencies other than Bitcoin will benefit from it.
The reason for this is that a judge’s decision that Ripple’s XRP is not a security as a result of the SEC’s lawsuit against Ripple means that the SEC is beyond its regulatory authority. This news sparked a rally in altcoins. However, it is uncertain how long this positive trend will last for altcoins, and Kendrick added that any institutional success in establishing Bitcoin ETFs would lead to a renewed focus.
