“Increased profitability for miners of BTC (bitcoin) mined means they can sell less and keep the cash inflows, reducing the net supply of BTC and pushing BTC prices higher,” Kendrick said in a report.
Bitcoin’s price has soared 80% since the start of the year, but its current level of just over $30,200 is still less than half the $69,000 it hit in November 2021.
Billions of dollars disappeared from the cryptocurrency sector in 2022, as central banks raised rates and a number of cryptocurrency companies, such as the FTX exchange, imploded. However, the collapse this year of several traditional banks has fueled the rally.
According to Standard Chartered, the reason for the expected price rise is that the miners who mint the 900 new bitcoins produced every day around the world will soon need to sell less to cover their costs, mainly the electricity they need to power supercomputers.