A new research team from the UK-based multinational banking and finance company predicts Bitcoin will hit $ 100,000 early next year.
Standard Chartered researchers have planned that Bitcoin would hit $ 100,000 early next year and the coin would drag Ether with it. The team added that it structurally values Bitcoin between $ 50,000 and $ 175,000, while Ether’s structural valuation is between $ 26,000 and $ 35,000.
a report released by analysts on Tuesday suggests that Bitcoin, which has traded around the $ 50,000 mark in recent days, could potentially rise to as high as $ 175,000, in which case Ether could reach $ 35,000. According to Geoff Kendrick of Standard Chartered, the oscillation factor to watch out for is the halving that occurs every four and a half years.
“I think the main driver of the entire asset class is the cyclical nature of the bitcoin supply halving every four and a half years, with the number of new bitcoins issued being halved.”, he noted.
Kendrick, who leads emerging market currency research and cryptocurrency research at the bank, estimates that in the short term Bitcoin could reach $ 100,000 by the end of this year or early 2022. He adds that alongside this valuation forecast, Ether could reach $ 15,000 before the middle of next year.
The Standard Chartered team is confident that Bitcoin will emerge as the go-to option for peer-to-peer transactions in a cashless world. The research team also highlighted the lack of diversity in Bitcoin’s use cases. In this regard, analysts said that with Bitcoin limited to peer-to-peer trades and use as a store of value, Ether’s ease of use could still allow it to act as a financial market. .
« ETH serves more as a facilitator of a larger software platform hosting a variety of decentralized applications (dApps) and contracts, which together make up the Ethereum network. This results in a much larger set of use cases. Can we read in the report.
The researchers also observed that with Ethereum, the risks would be higher given that the SEC’s regulatory efforts are planned to classify it as equities in the future.
“There is clearly a risk for Ethereum that at some point the SEC sees it as equivalent to stocks Kendrick told clients.
Standard Chartered has already found its place in the crypto space, having announced earlier this year its own digital asset brokerage and exchange platform for institutional clients.
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