Bitcoin may hit US$175,000, StanChart analysts say

• Bitcoin (BTC) price slips to US$42,377 on Tuesday
• StanChart’s new crypto research team gave a US$175,000 long-term price target
• Celebrity investor Kevin O’Leary plans to raise his crypto exposure to 7%
• S&P analysts noted that US cities are mulling more crypto moves
• Feeling bullish or bearish about bitcoin? Open an account with us today to start trading the asset.

BTC price: what’s the latest?

The world’s largest leading cryptocurrency was trading at US$42,377 as at 13:35 SGT on Tuesday, bouncing from a 1.5-month low of US$40,193 in the early morning, although it was still down 7.4% day-on-day.

In April, the volatile token touched a record high just shy of US$65,000, but sank under US$30,000 in June and again in July.

Year-to-date, it is up about 47%, from about US$28,890 at the end of 2020.

Why is StanChart eyeing US$175,000 for Bitcoin?

UK bank Standard Chartered (StanChart), which recently appointed Geoffrey Kendrick to helm its new crypto research team in London, has turned bullish on Bitcoin.

Kendrick has said that Bitcoin will most likely be the eventual global winner as a currency, instead of as a pure investment.

The StanChart team predicted that BTC’s price will more than double to US$100,000 by early next year.

In the long term, the world’s largest virtual coin could soar to US$175,000, they forecast.

‘I don’t know what the timeline is, but if we fast-forward 20 years, it’s pretty clear to me that a lot of countries will have gone completely cashless,’ Kendrick said.

‘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 wrote. ‘Cyclically, we expect a peak around US$100,000 in late 2021 or early 2022.’

Meanwhile, a unit of StanChart is setting up a joint venture to start a cryptocurrency brokerage and exchange platform in Britain and Europe, targeting institutional traders.

Shark Tank's Kevin O’Leary predicts massive BTC purchases

Kevin O’Leary, a celebrity investor on the Shark Tank reality TV series, said he foresees ‘another trillion dollars worth of buying’ into Bitcoin when regulators eventually recognise cryptocurrencies as an institutional asset class.

The Canadian businessman also intends to raise his exposure to crypto to 7% by the end of this year, up from 3%, he said in a CNBC interview last week.

Back in 2019, O’Leary had described Bitcoin as ‘garbage’ and ‘worthless’.

US states ponder possibilities in crypto universe

S&P Global Ratings recently wrote that US states and local governments are increasingly considering cryptocurrencies as an investment, a payment option, or a job generator.

However, because the steps taken so far by public finance issuers have been small, there have been no negative or positive credit considerations related to crypto activities, analysts from the credit rating agency said.

‘There are clearly things that could be a benefit to credit conditions - the efficiencies of the transfer, the returns are positive, you get greater asset allocation diversification,’ S&P analysts highlighted.

Thinking of trading BTC? Take a long or short position today.

CFD trading is a way of speculating on financial markets that doesn’t require the buying and selling of any underlying assets.

Opening an account with IG is free and simple. You'll get access to eight cryptocurrency markets, and you don't have to fund or trade until you're ready.

When you’re ready to open a position, you can add stops and limits to manage your risk. As a new trader you’ll also get lower minimum deal sizes for two weeks.