Bitcoin to ‘Easily’ Hit $60K in 2021, Pressing ECB for Digital Euro, Says German Bank

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In Brief
  • BayernLB believes bitcoin will hit $60,000 during 2021.

  • The German bank bases its projection on the contrast between the monetary policy of central banks and BTC.

  • It claims that bitcoin’s price will encourage the ECB to hasten the work on its own digital currency.

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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.

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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.

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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.

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.

Among these investors are corporate buyers. The report noted MicroStrategy and Square, claiming that corporate treasurers “are holding center stage in the current cycle.”

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.

Among others, BeInCrypto has previously reported on the digital currency efforts from China, the Bank of England, and the US Federal Reserve, as well as the recently-launched Bahamian ‘Sand Dollar’.

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.

 

Since a central authority will control the digital euro’s overall supply, it will not deliver “a ‘hard currency’ of the Bitcoin variety.”

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A former professional gambler, Rick first found Bitcoin in 2013 whilst researching alternative payment methods to use at online casinos. After transitioning to writing full-time in 2016, he put a growing passion for Bitcoin to work for him. He has since written for a number of digital asset publications.

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