- Standard Chartered holds a bullish stance regarding both Bitcoin and Ethereum, but a more optimistic view on the latter.
- The bank predicts $175,000 for Bitcoin and $35,000 for ETH in the long run.
- The bank believes Bitcoin is more akin to a “currency,” but compares Ethereum to a “financial market.”
Standard Chartered, a British multinational banking and financial services firm, has released its first report on digital assets. The giant British bank holds a bullish stance on both Bitcoin and Ethereum, but a more optimistic view on the second-largest crypto by market cap.
As per Standard Chartered, Ethereum ecosystem’s extensive functionality which allows financial activities like trading, lending, and insurance makes it more comparable to a “financial market.” On the other hand, the bank’s global research team assumes Bitcoin is more of a “currency.”
Led by Geoffrey Kendrick, the bank’s research team believes Ethereum would outperform Bitcoin, arguing that Ethereum’s abundant real-life use cases gives it an edge over other digital assets, including the leading cryptocurrency. Standard Chartered also expects Ethereum to surpass Bitcoin in terms of market capitalization in the near future.
The bank forecasts a valuation of $50,000 to $175,000 for Bitcoin over the long term. However, the bank is much more bullish on Ethereum, predicting the second-largest crypto to hit somewhere between $26,000 to $35,000 in the long run.
As of now, Bitcoin is trading at around $46,500 and ETH at just over $3,400, as per data by Coinmarketcap. That means Standard Chartered anticipates BTC to increase by around 4x and ETH by around 10x in the most optimistic scenario.
How Standard Chartered Made its Forecasts
The bank believes Bitcoin is more akin to a “currency.” Therefore, it compared Bitcoin with credit card market capitalization to arrive at that valuation.
On the other hand, Standard Chartered acknowledges Ethereum as a “financial market,” comparing its value to global banks. That is why the bank ends up valuing Ethereum much larger than Bitcoin.
The bank asserted that currently, two factors are holding Ethereum from reaching its actual value. “The current price reflects both the relative complexity of ETH (versus BTC) and the uncertainty around ETH’s development,” it said.
The bank added that these factors can actually pose a threat to Ethereum investors. “In other words, while the potential returns may be greater for ETH than for BTC, risks are also higher,” the report added.
Prior to this, Nigel Green, CEO and founder at deVere Group, predicted that Ethereum would continue outperforming Bitcoin during this year, and finally surpass it by 2026. According to Green, Ethereum’s abundant use cases along with its ever-improving ecosystem gives it an edge over other crypto assets. He said:
First, Ether has a higher level of real-use potential as Ethereum – the platform on which it is the native cryptocurrency – is the most in-demand development platform for smart contracts, thereby highlighting that network’s value not only as a platform for developers but as a worldwide financial utility.