08 Sep 2021 · 2 min read

Standard Chartered Sees Major Upside to Ethereum, Bitcoin

Source: Adobe/Игорь Головнёв

Ethereum (ETH) could be expected to rise as much as 10x from current prices, while bitcoin (BTC) may rise nearly 4x, according to the predictions from a new crypto-focused research team at British multinational bank Standard Chartered.

The bullish predictions were made in a report titled Ethereum Investor Guide, published by the bank’s new crypto team on Tuesday this week. And according to the team, it is ETH that has the most to gain out of the two, as investors begin to fully appreciate the platform’s potential.

“A range of USD 26,000-35,000 may appear high compared to the current ETH price (just below USD 4,000), but we think the current price reflects both the relative complexity of ETH (versus BTC) and the uncertainty around ETHs development,” Standard Chartered’s analysts wrote. 

Moreover, they estimate that ETH will not only grow in US dollar terms, but also relative to BTC, saying that they see “the Ethereum-Bitcoin cross doubling to 0.161, a level at which ETH’s market cap would catch up to BTC’s.”

At 12:58 UTC on Wednesday, the ETH-to-BTC ratio stood at 0.074, less than half of the bank’s target ratio.

To arrive at these potential valuations, the report authors said that they applied an analogy of Ethereum being “the global banking system for crypto,” similar to how they used the analogy that “bitcoin eventually becomes to crypto what cash is for global finance” in their Bitcoin Investor Guide.

The researchers further explained that applying these analogies would give bitcoin a market cap on the lower end of around USD 1tn, or a price of USD 50,000 per bitcoin – which happens to be close to the current price. At the high end, however, the bank said it sees bitcoin reaching USD 100,000 by early next year, and up to USD 175,000 long-term.

Ethereum, meanwhile, would see a much bigger upside, with a potential market cap of USD 4tn, pricing each ETH token at a massive USD 35,000, per the report.

Noteworthy, however, is that the bank added that in order for ETH to attain such valuation, “BTC would also need to trade towards the upper end of its valuation range.”

The upper end of the bank’s valuation target for bitcoin is the said USD 175,000, nearly a 4x increase from the current bitcoin price (around USD 46,500).
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