Geoffrey Kendrick, StanChart’s head of FX and digital assets research, highlighted the role of miners in determining the overall supply of newly mined bitcoin. He emphasized that miner profitability is a key contributing factor to the price of bitcoin. StanChart noted that the selling percentage of bitcoin by miners slightly decreased in the second quarter, leading to a decrease in supply and higher prices. By adjusting their selling strategy, miners can benefit from the anticipated price increase in bitcoin. StanChart expects bitcoin to rise to about $50,000 by the end of 2023 as the share of newly mined bitcoin sold is projected to decrease. Miners indicated that selling equity or borrowing money was unfavorable, making selling bitcoin the most feasible option to raise cash. The bank reiterates its end-2024 BTC price target of around $100,000.
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