Standard Chartered Bank has highlighted the important role that Bitcoin miners will play in the rise of Bitcoin prices.

International bank Standard Chartered has predicted that Bitcoin (BTC) prices could reach as high as $50,000 by the end of this year and $120,000 next year, Reuters reported July 10.

Standard Chartered’s prediction is in line with cryptocurrency financial services platform Matrixport, which predicted in a report shared with CryptoSlate on July 6 that BTC’s price will reach $125,000 by 2024.

Markus Thielen, Head of Research and Strategy at Matrixport, said:

“If history is any guide, there is a 100% chance that Bitcoin will experience another massive bull run by the end of 2024 with a target price of $125,000 (+310%).”

Standard Chartered Bank highlights role of miners

Standard Chartered noted that Bitcoin miners could play a key role in this potential price rally.

Geoff Kendrick, one of the bank’s foreign exchange analysts, said that Bitcoin’s price could rise because miners’ profitability rises and they have no selling pressure. Kendrick reportedly said:

“Increased profitability for miners per BTC (bitcoin) mined means they can sell less while keeping cash flowing in, reducing BTC net supply and pushing up BTC prices.”

Last year, Bitcoin miners were one of the groups severely affected by the market conditions at historical lows, leading to the capitulation of several cryptocurrency companies including FTX.

However, Bitcoin miners appear to be bucking the trend this year as many are in better financial shape. Luxor Technologies COO Ethan Vera estimates that miner debt has been reduced from $8 billion in 2022 to around $4.5 billion to $6 billion.

Most miners who have sold bitcoin this year are looking to cash in on the recent price rally, which has seen bitcoin gain more than 70 percent so far this year, according to CryptoSlate.

Institutional interest in Bitcoin surges

In addition to miners, traditional financial institutions can also play an important role in Bitcoin price movements.

In June, triggered by BlackRock’s application, traditional institutions applied for spot BTC ETFs, triggering an industry boom. In addition, according to CoinShares, cryptocurrency ETPs have recorded capital inflows for three consecutive weeks.

Since then, positive sentiment has returned to the market, with the flagship digital asset rising to a yearly high of $31,500 before falling back to its current level of $30,279 at the time of writing.