Bitcoin
Bitcoin to $350,000? Bulls say the current recovery is just the beginning.
Bitcoin (BTC-USD) on Monday rose above $72,000, a new all-time high, but it is far from the peak expected by some who follow the world’s largest cryptocurrency.
Lender Standard Chartered predicts that bitcoin will 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.
See more information: 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 bitcoins, predicts 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 very difficult to estimate the future price of bitcoin because it has no intrinsic value, and most large companies with large research arms are currently avoiding 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 requested anonymity. “There is no way to set a goal.”
That hasn’t stopped other financial companies from trying – and setting the price significantly higher than it is today. Some of the companies making these predictions also sell products that provide investors with exposure to the digital asset.
One of them is VanEck, one of the money managers who received approval from the Securities and Exchange Commission in January to launch a new spot bitcoin exchange-traded fund.
VanEck recently scrapped his $80,000 target for 2024 as bitcoin began hitting new highs last week. However, the company’s “medium-term” goal of $350,000 still stands.
“We are in uncharted territory,” Matthew Sigel, head of digital asset research at VanEck, told Yahoo Finance in an email.
Another money manager that received approval to launch a bitcoin ETF, Ark Invest, dismissed a long-term estimate of more than $1.3 million per coin over the next decade.
Ark’s director of digital assets, Yassine Elmandjra, acknowledged that such a lofty projection may seem “absurd.”
Their reasoning is that bitcoin’s value will increase as its various use cases increase the eventual size of the digital asset’s market value. Bitcoin can be a “store of value” independent of central banks and governments, serve as a hedge against inflation and potentially have a greater share in global payments, he said.
Demand, Elmandjra added, is key to assessing how high the price can rise.
Wall Street strategists often project a stock’s future price using the company’s earnings per share – based on the company’s growth strategy – multiplied by the valuation that investors will be willing to pay for the stock.
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“Earnings per share, you’re going to look at a balance sheet,” Elmandjra said. “Here [with bitcoin]you’ll see, okay, what’s the demand to keep a digitally native, off-season, strictly scarce asset.”
Right now, demand for bitcoin is clearly greater than supply thanks in large part to the trading of 11 new spot bitcoin ETFs that have raised billions since their launch in January.
The new ETFs have been buying a daily average of 4,000 coins since their launch in January through Thursday, according to Mark Connors, head of research at crypto asset manager 3iQ.
This is considerably more than the 900 coins created daily by the Bitcoin network.
More bitcoin supply issues are expected this year due to the “halving” estimated to occur between April 19th and 20th. After the next cut, the daily supply of new coins will be 450 instead of 900.
Connors’ company has a basic target for bitcoin to reach $110,000 in 2024 and $140,000 the following year.
He also has a more ambitious prediction. In this case, bitcoin reaches US$180,000 this year and US$450,000 in 2025.
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