Billionaires are buying this cryptocurrency that could surge 116% by the end of the year, according to this analyst
Bitcoin (CRYPTO: BTC) It may be a volatile asset. But that hasn't stopped some analysts, pundits, and billionaires from becoming extremely bullish on the world's largest cryptocurrency and buying massive amounts of it. After recent purchases the other day, billionaire Michael Saylor's company MicroStrategy Incorporated owned 1.17% of all bitcoins in circulation. Other billionaires, including Elon Musk and the Winklevoss twins, have also bought huge amounts of bitcoins.
These billionaires seem to be in line with a Wall Street analyst who recently published a research note suggesting that the price of Bitcoin could surge 116% from current levels and hit $125,000 by the end of the year. Let’s take a look.
Impact of the election
In a recent report by the investment bank Chartered standardA team of analysts claimed that Bitcoin is on the verge of reaching a new high by the end of the year, which will happen in just a few months. The bank considered several economic and political factors to reach this conclusion.
First, Standard Chartered analyzed how the presidential election could affect Bitcoin and ultimately determined that the outcome is less important than people think.
“Progress on relaxing regulations — particularly the repeal of SAB 121, which imposes strict accounting rules on banks’ digital asset holdings — will continue into 2025 no matter who is in the White House,” Geoff Kendrick, global head of digital asset research at Standard Chartered, wrote in his note. Still, Kendrick believes crypto deregulation will move faster if former President Donald Trump wins rather than Vice President Kamala Harris, though he still thinks it would eventually happen under a Harris presidency as well.
Kendrick believes that a Harris victory would likely trigger an initial decline in the price of Bitcoin, but that it would not last long due to other external factors. Kendrick assigned Bitcoin a price target of $125,000 if Trump wins and a price target of $75,000 if Harris wins.
The economic impact
Aside from the election, Kendrick also believes Bitcoin will begin to “generate positive momentum” as the yield curve uninverts after more than two years and begins to steepen, with long-term yields outperforming short-term ones.
From a historical perspective, this makes sense, because Bitcoin has performed well in low interest rate environments, which tend to increase investment in riskier assets because Treasury bills no longer yield as much. Additionally, lower interest rates typically result in a weaker U.S. dollar, which creates another environment where Bitcoin has performed well because it is seen as an alternative to traditional currencies like the dollar.
Bitcoin Price data by Charts And
As you can see above, Bitcoin has performed very well in a lower interest rate environment. Recently, it has also proven to be resilient in a higher rate environment.
Bitcoin and price targets
Price targets are difficult to predict even for older blue chip stocks, but they are especially difficult for an asset like Bitcoinwhich can be more volatile than a traditional stock. We are also in the process of learning more about Bitcoin and other cryptocurrencies.
Now, billionaires who own Bitcoin have predicted some pretty outlandish price targets. For example, Saylor believes that the price of Bitcoin could will reach 13 million dollars in 2045. Maybe, but it seems like an aggressive move. The good news about Wall Street price targets is that they are typically set 12 or 18 months out and therefore a bit more realistic.
I couldn't tell you whether Bitcoin will hit $75,000 or $125,000 by the end of the year, but I do think Bitcoin has long-term upside potential and can be part of your portfolio.
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Bram Berkowitz has a position in Bitcoin. The Motley Fool has a position in Bitcoin and recommends it. The Motley Fool recommends Standard Chartered Plc. The Motley Fool has a position in Bitcoin and recommends it. Disclosure Policy.
Billionaires are buying this cryptocurrency that could surge 116% by the end of the year, according to this analyst Originally published by The Motley Fool
