Bitcoin to hit US$100,000 by early next year, while Ethereum offers greater risk, say bank analysts

“As a medium of exchange, bitcoin may become the dominant peer-to-peer payment method for the global unbanked in a future cashless world,” said StanChart analyst Geoffrey Kendrick

Bitcoin’s dollar price could hit 100,000 later this year or in early 2022 and the number-one cryptocurrency may have a long-term value close to US$175,000, according to analysts at ().

A new cryptocurrency research team at the FTSE 100-listed bank also calculated that Ethereum could “structurally” demand a valuation of between US$26,000 and US$35,000.

For Ethereum to achieve this value, Bitcoin would need to have got closer to that $175,000 valuation, analyst Geoffrey Kendrick wrote in the note.

“As a medium of exchange, bitcoin may become the dominant peer-to-peer payment method for the global unbanked in a future cashless world,” he added.

The StanChart crypto team said that Ethereum and Bitcoin “share many characteristics,” though the Ethereum blockchain benefits from factors such as smart contracts, decentralized autonomous organizations, decentralized finance (defi), non-fungible token (NFT) assets, and initial coin offerings (ICOs).

But despite the many uses Ethereum offers, the analysts said there could be a greater risk than with bitcoin.

“While potential returns may be greater for ETH than for BTC, risks are also higher.”

 

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