Bitcoin (BTC-USD) rose above $72,000 on Monday, a new all-time high, but that is far from the peak that some who follow the world's largest cryptocurrency were expecting.
Lender Standard Chartered expects Bitcoin to reach $100,000 by the end of the year. Research firm Fundstrat has a target range of $116,000 to $137,000. Hedge fund SkyBridge predicts $170,000 by April 2025.
Read more: Is this a good time to invest in Bitcoin?
“People think we're crazy and that's fine, but I don't think we're crazy and that's why we have such a big position,” Anthony Scaramucci, founder and CEO of SkyBridge Capital, told Yahoo Finance Live.
Anthony Scaramucci's SkyBridge Capital, which owns some Bitcoin, predicts that the price will rise to $170,000 by April 2025. (PATRICK T. FALLON/AFP via Getty Images) (PATRICK T. FALLON via Getty Images)
Some on Wall Street say it is quite difficult to estimate the future price of Bitcoin because it has no intrinsic value and most large companies with major research arms are currently staying away from setting targets. JPMorgan Chase (JPM) CEO Jamie Dimon likened it to a “pet rock.”
“Bitcoin is like art,” said a Wall Street research analyst who wished to remain anonymous. “There is no way to set a goal.”
That didn't stop other financial companies from trying – and setting the price significantly higher than today. Some of the companies making these predictions also sell products that give investors access to the digital asset.
One of them is VanEck, one of the asset managers that received approval from the Securities and Exchange Commission in January to launch a new spot Bitcoin exchange-traded fund.
VanEck recently abandoned his $80,000 target for 2024 as Bitcoin began hitting new all-time highs last week. However, the company's “mid-term” target of $350,000 still stands.
“We are in uncharted territory,” Matthew Sigel, head of digital assets research at VanEck, told Yahoo Finance via email.
Another asset manager that has received approval to launch a Bitcoin ETF, Ark Invest, has dismissed a long-term bull case estimate of more than $1.3 million per coin over the next decade.
The story goes on
Yassine Elmandjra, director of digital assets at Ark, acknowledged that such a lofty prediction could seem “absurd.”
His argument is that Bitcoin's value will increase as its various use cases ultimately contribute to the digital asset's market value. Bitcoin could be a “store of value” independent of central banks and governments, serve as a hedge against inflation and potentially take a larger share of global payments, he said.
Demand, Elmandjra added, is key to assessing how high the price could rise.
Wall Street strategists often forecast future prices for a stock by using a company's earnings per share – based on the company's growth strategy – multiplied by the valuation that investors are willing to pay for the stock.
“With earnings per share, you’re looking at a balance sheet of equity,” Elmandjra said. “Here [with bitcoin]They will look at how much demand there is to hold an unusually scarce, digitally native asset.
Currently, demand for Bitcoin is clearly greater than supply, thanks largely to trading in 11 new spot Bitcoin ETFs that have raised billions since their launch in January.
According to Mark Connors, head of research at crypto asset manager 3iQ, the new ETFs have bought an average of 4,000 coins daily through Thursday since their launch in January.
This is significantly more than the 900 coins that the Bitcoin network creates every day.
With the “halving” expected to take place sometime between April 19th and 20th, more supply issues are expected for Bitcoin this year. After this next cut, the daily supply of new coins will be 450 instead of 900.
Connors' company has set a goal for Bitcoin to reach $110,000 in 2024 and $140,000 next year.
There is also a more ambitious prediction. In this case, Bitcoin will reach $180,000 this year and $450,000 in 2025.
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