Billionaires are buying this cryptocurrency that could rise 116% by the end of the year, according to this analyst

Bitcoin (CRYPTO: BTC) it can 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 huge amounts of it. After the recent acquisitions of the past few days, the company of the billionaire Michael Saylor MicroStrategy Incorporated held 1.17% of the total outstanding Bitcoin. Other billionaires, including Elon Musk and the Winklevoss twins, have also acquired huge amounts of Bitcoin.

These billionaires appear to be in line with a Wall Street analyst who recently issued a research note suggesting that the price of Bitcoin could rise 116% from current levels and reach $125,000 by the end of the year. Let’s take a look.

The impact of elections

In a recent investment bank report Standard Chartereda team of analysts said Bitcoin is poised to hit a new high by the end of the year, which is just months away. The Bank considered several economic and political factors in reaching this conclusion.

First, Standard Chartered analyzed how the presidential election could affect Bitcoin, ultimately determining that the outcome is less important than people think.

“Progress on deregulation — particularly the repeal of SAB 121, which imposes strict accounting rules on banks’ digital asset holdings — will continue into 2025, regardless of who is in the White House,” Geoff Kendrick, global head of digital asset research. at Standard Chartered, he wrote in his note. However, Kendrick believes crypto deregulation will move faster if former President Donald Trump wins over Vice President Kamala Harris, though he still believes it would eventually happen under a Harris presidency as well.

Kendrick believes that a Harris victory would likely lead to an initial drop 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.

Economic impact

Aside from the election, Kendrick also believes Bitcoin will begin to “build positive momentum” as the yield curve inverts after more than two years and begins to flatten, with long-term yields outpacing short-term yields. short term.

This certainly makes sense from a historical perspective, as Bitcoin has performed well in falling interest rate environments, which tend to increase investment in riskier assets as Treasury bills no longer yield as much. Additionally, lower interest rates typically result in a weaker US dollar, creating another environment in which Bitcoin has performed well as it is viewed as an alternative to traditional currencies such as the dollar.

The story continues

Bitcoin Price Data by YCharts

As you can see above, Bitcoin has performed very well in a lower interest rate environment. Recently, it has also been resilient in the higher rate environment.

Bitcoin and price targets

Price targets are difficult to predict even for the oldest blue-chip stocks, but they are especially difficult for an asset like Bitcoin, which can be more volatile than a traditional stock. We are also still in the process of learning more about Bitcoin and other cryptocurrencies.

Now, the billionaires who own Bitcoin have predicted some pretty weird price targets. For example, Saylor believes that the price of Bitcoin could reach $13 million by 2045. Maybe, but it seems like an aggressive call. The good news about Wall Street price targets is that they are usually set 12 to 18 months out and are therefore a bit more realistic.

I couldn’t tell you if Bitcoin will hit $75,000 or $125,000 by the end of the year. But I think Bitcoin has long-term upside and can be part of your portfolio.

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Bram Berkowitz has a position in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool recommends Standard Chartered Plc. The Motley Fool has a disclosure policy.

Billionaires are buying this cryptocurrency that could rise 116% by the end of the year, according to this analyst, originally published by The Motley Fool