Yesterday, Bitcoin fell more than 10 percent after El Salvador officially adopted the cryptocurrency as a legal tender. The country experienced some difficulties with the launch and this, coupled with other minor factors led to a price crash. Firms associated with Bitcoin, like MicroStrategy, saw their shares fall yesterday as the price of Bitcoin crashed. Bitcoin which was trading at almost $52,00o yesterday fell to $43,000, losing about $9,000 in value.
Bitcoin recently reclaimed the $50,000 and it seems like it would remain like that for quite some time before the El Salvador-led crash happened. Irrespective of the recent price crash, a new research team at Standard Chartered has made a good prediction for the flagship cryptocurrency. The research team forecasts that the price of Bitcoin will more than double and hit a new all-time high of $100,000 by early next year. That was not all, they also predicted that Bitcoin could be worth as much as $175,000 on a long-term basis.
The research team also said made a prediction about Ethereum. After Bitcoin, Ethereum is the second-most valued cryptocurrency in the world. The team predicts that Ethereum will reach between $26,000 to $35,000 as Bitcoin becomes stable at $175,000.
In a note sent to clients on Tuesday, Geoffrey Kendrick – the Global Head Of Standard Chartered’s Emerging Market Currency Research said that “as a medium of exchange, bitcoin may become the dominant peer-to-peer payment method for the global unbanked in a future cashless world. Cyclically, we expect a peak around $100,000 in late 2021 or early 2022”.
Bitcoin was trading at $46,024 in early European trading on Wednesday after scaling a four-month high above $52,000. The price crash did not discourage El Salvador in any way, instead, the country saw it as an advantage and an opportunity. El Salvador’s President said that the country took advantage of the dip to buy more Bitcoin, stating that it added 150 more BTC to its previous holding bring the country’s total holding to 550 BTC. Bitcoin is expected to rise above $50,000 in the shortest possible time.
As of the time of drafting this article, Bitcoin was trading at $46,571.90.