The real value of Bitcoin has been a constant talking point within the cryptocurrency space. There have been several theories about the value of the leading cryptocurrency. America’s oldest bank has now dabbled in the conversation and published a report about it earlier this week.
Bitcoin could rally to $100,000 by the end of 2021
BNY Mellon has delved into the popular conversation about Bitcoin’s potential value. The oldest bank in the United States published a report earlier this week discussing the leading cryptocurrency’s potential value.
According to the BNY, Bitcoin could rally to $100,000 before the end of the year. The bank used the popular stock-to-flow ratio (S2F), which has been used several to determine Bitcoin’s true value.
The model predicts that Bitcoin could reach $100,000 before the end of the year as its all-time high currently stands around $62,000. The leading cryptocurrency is trading above the $58,000 mark, which is still remarkable considering it is up by 100% since the start of the year.
Several financial institutions such as JPMorgan have stated that Bitcoin is currently undervalued. According to most analysis. Bitcoin will be trading between $300,000 and $500,000 over the next few years.
Financial institutions covering Bitcoin regularly
Bitcoin and the general cryptocurrency market are slowly going mainstream. A few years ago, most financial institutions were not open to the idea of discussing Bitcoin. However, things have changed in recent years.
An increasing number of financial institutions are now covering Bitcoin and conducting in-depth research into its various aspects. They also provide regular reports to their clients regarding Bitcoin as it has become an investment option for most people.