Standard Chartered values BTC at $100k in 2022 and ETH at $26k

By Raffaele Redi

The bank’s global research team forecast BTC’s value rising to between $50,000 and $175,000

Standard Chartered said the value of bitcoin (BTC) value could reach $100,000 in early 2022.

The financial giant’s global team, led by Geoff Kendrick, valued BTC in a range between $50,000 and $175,000 as it initiated coverage of the two main crypto assets.

In contrast, the group’s crypto research team estimated ethereum (ETH)’s price at $26,000, and potentially moving in a range $26,000–$35,000, or 10 times ETH’s current value.

BTC as a way of payment 

The crypto research team at Standard Chartered is led by Geoff Kendrick, head of the emerging markets FX (West) division, and includes quantitative strategist Melissa Chan and Europe economist Christopher Graham.

The research team sees BTC as the “dominant peer-to-peer payment method for the global unbanked in a future cashless world”.

According to the researchers, BTC could potentially develop in such a sector with rapid gains and lack of competition as a medium of exchange, while as a store of value, BTC would enjoy a potential premium, given the slow pace of increase in supply.

The ‘crypto pragmatist’ team also sees BTC’s market cap potentially reaching $1trn, assuming that BTC captures all of the $20trn of transactions in the unbanked sector. However, as a store of value, the ‘digital gold’ may provide a hedge against inflation compared to other assets, challenging gold in investors’ portfolios.

The researchers also warned of risks, focusing on dormant accounts and cyber attacks that could eventually lead to one entity holding 51% of coins in circulation. The team claims that volatility risks could diminish in the long term.

ETH more convenient than BTC

Considering the range in which the two crypto assets move, Standard Chartered’s team suggested ETH is a better buy than BTC over the medium term, while seeing the ‘digital oil’ as a facilitator of a larger software platform hosting a variety of decentralised applications and therefore as a more flexible asset than BTC.

The team see the major ETH risks in the complexity of ethereum itself, with uncertainty around ETH development.

The growing institutional interest in cryptos

The London-based financial group instituted the crypto team as a response to the rapidly growing institutional interest in publicly traded digital assets.

“The gap between traditional finance and the digital world is narrowing by the day,” said Eric Robertsen, global head of research and chief strategist at Standard Chartered.

“As our clients begin exploring cryptocurrencies, other digital assets and decentralised finance, we aim to add value to their investment and risk-management strategies and help them navigate and incorporate this new asset class into their businesses,” he added.

BTC/USD price history

Date Close Change Change(%) Open High Low
Nov 30, 2021 57231.70 -602.65 -1.04% 57834.35 58025.95 56834.45
Nov 29, 2021 57834.25 506.10 0.88% 57328.15 58926.45 56754.70
Nov 28, 2021 57327.90 2568.15 4.69% 54759.75 57499.95 53309.60
Nov 27, 2021 54762.75 994.15 1.85% 53768.60 55324.30 53640.90
Nov 26, 2021 53781.20 -5225.90 -8.86% 59007.10 59211.45 53521.35
Nov 25, 2021 59005.35 1848.10 3.23% 57157.25 59463.45 57039.85
Nov 24, 2021 57156.95 -393.75 -0.68% 57550.70 57745.95 55878.10
Nov 23, 2021 57550.60 1279.20 2.27% 56271.40 57889.95 55393.70
Nov 22, 2021 56272.00 -2412.50 -4.11% 58684.50 59507.55 55633.85
Nov 21, 2021 58667.75 -1106.50 -1.85% 59774.25 60077.45 58554.45
Nov 20, 2021 59774.00 1661.25 2.86% 58112.75 59907.10 57416.45
Nov 19, 2021 58115.50 1221.45 2.15% 56894.05 58393.75 55630.30
Nov 18, 2021 56893.15 -3456.75 -5.73% 60349.90 60980.40 56485.25
Nov 17, 2021 60349.00 272.00 0.45% 60077.00 60849.35 58389.35
Nov 16, 2021 60077.90 -3521.25 -5.54% 63599.15 63606.25 58631.70
Nov 15, 2021 63599.00 -1917.40 -2.93% 65516.40 66358.00 63403.10
Nov 14, 2021 65516.80 1123.65 1.74% 64393.15 65524.15 63596.75
Nov 13, 2021 64393.00 253.50 0.40% 64139.50 64982.50 63388.50
Nov 12, 2021 64141.50 -675.75 -1.04% 64817.25 65499.80 62290.40
Nov 11, 2021 64818.90 -89.10 -0.14% 64908.00 65606.10 64117.75

Further reading: Bitcoin price prediction for 2030: Where will it be?

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