BayernLB has stated that the bitcoin price could ‘easily’ hit $60,000 by mid-2021. The publicly-regulated German bank claimed that the digital asset’s price performance will motivate the European Central Bank (ECB) to launch a digital euro to compete.
BayernLB claimed that a combination of bitcoin’s monetary policy, recent halving, and a growing appeal among corporate investors will drive the next bull market.
It added that the ECB’s ‘rival’ digital currency would compete with bitcoin only in terms of its infrastructure and user interface.
BayernLB Bullish on Bitcoin
In a recent report, the Munich-based financial institutional set its outlook for 2021. Within the document, BayernLB claimed that the bitcoin price looks set to top $60,000 by mid-2021.
Is the Bitcoin bull putting the screws on the ECB? In their brand-new outlook for 2021, our research team looks at #bitcoin and its far-reaching implications once again. The outlook can be found here: https://t.co/2kYkdlf9om (p.22 and in German here: https://t.co/kPGmLqiuGI p.22)— BayernLB (@BayernLB) November 27, 2020
The German bank stated that a renewed BTC bull market ‘looks to be in full swing’ already. The report noted a variety of factors that could continue driving buying pressure.
It cited recent loose monetary policy from the world’s central banks in the wake of the coronavirus pandemic. Meanwhile, bitcoin’s own monetary policy, which underwent a supply contraction in May due to the halving, appears increasingly attractive as a means of protecting wealth.
BayernLB compared the Bitcoin halving event to OPEC and its restrictions in the oil market. It went on to claim that the initial price spike following the quadrennial event attracts new investors into BTC.
The German bank is not the only financial institution to come forward with its own bullish price call for BTC. A managing director at Citibank, known for previously over-exuberant predictions, recently made the case for a $318,000 bitcoin by the end of 2021.
BTC’s Rise to Pressure ECB
According to BayernLB, bitcoin’s projected price performance will encourage the ECB to hasten work on its digital euro project. The central bank is just one of many working towards its own digital currency.
Many cryptocurrency industry observers are concerned with the overreach such centrally-controlled digital currencies will enable. Some reason this will drive more people towards bitcoin.
The new Bretton Woods will be the usage of CBDC, purely backed by the Central Banks.— Afiq Azni (@afiqazni) November 25, 2020
It will be easier to be issued rather than printing more physical cash & easier to track on where it'll be spent.
The future is darker then ever. #Bitcoin is our only hope.
Since a central authority will control the digital euro’s overall supply, it will not deliver “a ‘hard currency’ of the Bitcoin variety.”