The cryptocurrency with the largest market cap of more than $1 trillion- Bitcoin, continues to be the center of attraction of the booming Blockchain space. The leading digital asset continues to be very successful, despite a few lows and criticisms. The last month has seen the price of the cryptocurrency parading the $60,000 mark, and it has refused to hit a new ATH in almost a month. However, one of the world’s largest banks- BNY Mellon, in a new investment-themed research, believes that the asset’s fortune is set to go as high as $288,000 by December 2021.
BNY Mellion research agrees with many analysts
With assets worth more than $20 trillion under its coffers, the famous investment bank believes that Bitcoin’s fortune will not spiral downward. On the contrary, following their detailed strategic report, they have projected the asset to end the year between $100,000 and at least $288,000. Their new report seems to weigh various investment options and evaluate their current worth. The report discussed the fortunes of one of the most prominent traditional investment options globally- Gold, sighting that the asset could be heading for stiff competition from many other investment options in the world.
The report also analyzed Bitcoin via the stock-to-flow, believing that the digital asset is still in its early days and is heading for more glories. The report seemed to have compared the value of Bitcoin with its scarcity, as a result of this concluding that if this model is followed thoroughly, the digital asset’s fortune will go up. It is worthy to note that this price prediction model has proven to be very efficient in the last few years, as it has been using to predict the value of Gold and a few other securities. Many analysts, before this time, believe that the accuracy of this model is almost close to 100%, as it has been very reliable in the past.
Price predictions could follow several paths
The variant models of predicting digital assets’ price have not been short of criticisms, as some of them have flawed woefully. However, if the stock-flow-model of predicting Bitcoin is insufficient, other models like- the net cost could tell a better story. The net cost model seems to evaluate production cost to the asset value. A typical example of a net cost model approach will be attaching the price of Bitcoin to the price of mining the digital asset. Unfortunately, the model’s prediction is flawed, as it may not wholly tally with the reality of price factors in the real world.
However, many factors, which didn’t rely on any of the BNY Mellon research models, have previously influenced Bitcoin’s price in the last few months. Institutional buying of Bitcoin, like that of Tesla, which pushed prices above 25% in a single day, has been a factor behind the price hike lately. However, BNY Mellon projections will delight many Bitcoin admirers and investors who are optimistic about the future of digital assets.