On Tuesday, the British banking behemoth Standard Chartered released its first crypto reports, predicting the bitcoin value to hit $100,000 by early 2022.

According to Reuters, Standard Chartered's new Bitcoin and crypto research team predict by the start of next year bitcoin will double in valuation to reach $100,000, and that it might attain as much as $175,000 in the long run.

Geoffrey Kendrick, the head of Standard Chartered's new Bitcoin and crypto research branch and global head of its emerging market currency research told clients in a note on Tuesday: "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 adds, "Cyclically, we expect a peak around $100,000 in late 2021 or early 2022"

According to Standard Chartered's global research team, Ethereum is more akin to a "financial market" in which activities such as lending, insurance, and exchanges can take place. And Bitcoin is more equivalent to a "currency." As a result, Standard Chartered expects that Ethereum's entire market capitalization will eventually catch up to Bitcoin's due to its broader use cases.

Over the long run, the bank values bitcoin at $50,000-$175,000, and ether at $26,000-$35,000. However, in order for Ethereum to get there, Bitcoin must first trade at $175,000, according to the team. 

The comments came on the same day that El Salvador legalized Bitcoin as a form of payment to help the unbanked and to save on remittance fees. El Zonte, a small coastal community, also known as Bitcoin Beach, has adopted cryptocurrency as a way of life and has already reaped the benefits of adoption. 

On Wednesday, following a four-month peak above $52,000 on Monday, Bitcoin reached $46,024 in early European trade and Ethereum was down at $3,366.

Pavan A

CBW - External Analyst

INDIA