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Bitcoin supply shock will send BTC price to $120K
Bitcoin, the pioneering cryptocurrency, has experienced significant price fluctuations throughout its existence. However, a recent report from Standard Chartered, a renowned financial institution, suggests a remarkable shift in their perspective. After previously predicting a potential drop to $5,000, Standard Chartered now forecasts Bitcoin’s price to reach $50,000 by the end of 2023, followed by an impressive surge to $120,000 by the close of the next year. This optimistic outlook is attributed to a critical factor known as the Bitcoin supply shock, where miners hoard BTC, driving up prices in the process. In this article, we will delve into the details of this supply shock phenomenon and its potential impact on Bitcoin’s price.
The Bitcoin Supply Shock Explained
Bitcoin mining is the process by which new Bitcoins are created and transactions are verified on the blockchain. Miners dedicate substantial computational power and resources to solve complex mathematical problems, earning newly minted Bitcoins as rewards. However, the report suggests that miners are beginning to shift their behavior in response to changing market dynamics.
