America’s oldest bank BNY Mellon is digging deeper into Bitcoin’s potential as a digital gold.
The bank published a report earlier this week commenting on Bitcoin’s price and its long-term prospects. Although BNY Mellon did not drop any specific price prediction for the leading cryptocurrency, it referred to the stock-to-flow model cross-asset model. The model sets a price target of $100,000 per Bitcoin by the end of 2021.
BNY Mellon in its report compared Bitcoin to gold, a narrative that has been gaining ground in investment circles. MicroStrategy Michael Saylor, for instance, has on multiple occasions hyped Bitcoin over gold. A growing lack of confidence in fiat and the promising prospect of Bitcoin have attracted a lot of new investors.
Speaking of Bitcoin’s future price target, the report notes that “bitcoin valuation will likely be a combination of several models and be constantly evolving.”
BNY Mellon is not the only bank that is talking about Bitcoin. In fact, financial institutions like JPMorgan and Citibank have been publicly discussing the digital asset before BNY Mellon openly joined the conversation. Mid-last month, BNY announced that it was rolling out a crypto custody service.
It is interesting to see that the once heavily-ridiculed cryptocurrency is now a symbol of the future of finance.