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Bitcoin at $350,000? Bulls say the current rally is just the beginning.
Bitcoin (BTC-USD) surged above $72,000 on Monday, a new all-time high, but it’s far from the high expected by some who track 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 forecasts $170,000 by April 2025.
Learn more: Is now 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 bitcoin, predicts its price will reach $170,000 by April 2025. (PATRICK T. FALLON/AFP via Getty Images) (PATRICK T. FALLON via Getty Images)
Some on Wall Street say it’s quite difficult to estimate the future price of bitcoin because it has no intrinsic value, and most large companies with significant research operations are currently refraining from setting targets. JPMorgan Chase (JPM) CEO Jamie Dimon likened it to a “pet stone.”
“Bitcoin is like art,” said a Wall Street analyst who requested anonymity. “There’s no way to set a goal.”
This did not stop other financial companies from trying and setting prices significantly higher than 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 fund managers who received approval from the Securities and Exchange Commission in January to launch a new Bitcoin spot 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 “medium-term” goal of $350,000 still stands.
“We’re in uncharted territory,” Matthew Sigel, VanEck’s head of digital asset research, told Yahoo Finance via email.
Another fund manager that received approval to launch a Bitcoin ETF, Ark Invest, issued a long-term estimate of over $1.3 million per coin over the next decade.
Ark’s director of digital assets, Yassine Elmandjra, acknowledged that such a lofty projection might seem “absurd.”
His reasoning is that the value of bitcoin 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 take a larger share in global payments, he said.
Demand, Elmandjra added, is key to gauging how high the price could rise.
Wall Street strategists often project a stock’s future prices using a company’s earnings per share – based on the company’s growth strategy – multiplied by the valuation that investors will be willing to pay for it. action.
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“Earnings per share, you’re going to look at an equity balance sheet,” Elmandjra said. “Here [with bitcoin]you’re going to look at, okay, what’s the demand for holding a digitally native, strictly rare and unusual asset.
Right away, demand for bitcoin clearly exceeds supply thanks in large part to trading in 11 new spot bitcoin ETFs that have made billions since their launch in January.
The new ETFs bought an average of 4,000 coins per day since their launch in January through Thursday, according to Mark Connors, head of research for crypto asset manager 3iQ.
This is far more than the 900 coins created daily by the Bitcoin network.
Further supply issues are expected for Bitcoin this year, in light of the estimated “halving” between April 19 and 20. After this next reduction, the daily supply of new coins will be 450 instead of 900.
Connors’ company has a basic goal of bitcoin reaching $110,000 in 2024 and $140,000 the following year.
It also contains a more ambitious forecast. In this case, bitcoin would reach $180,000 this year and $450,000 in 2025.
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