Experts agree that a Bitcoin price of $100,000 by the end of the year would cause Ether’s price to rise by orders of magnitude in the same period.
Industry analysts are describing Tuesday’s crypto market collapse as a “false dip,” while predicting that Bitcoin (BTC) will reach $100,000 by the end of the calendar year.
Following the publication of a new report by Standard Chartered‘s cryptocurrency research section, it is expected that Bitcoin would reach $100,000 “late 2021 or early 2022,” along with a significant increase in the price of Ether (ETH).
According to the study team, Ether is “structurally” valued at $26,000–$35,000 — a tenfold increase over its present value — but BTC must reach $175,000 in order for that to happen.
Nick Spanos, one of the earliest Bitcoin exchange operators and co-founder of the Zap Protocol, described the crypto market’s drop on Tuesday as a “false dip” rather than a crash.
In El Salvador, there were some teething problems, and big finance and the media blamed it on that. At the moment, I’m in El Salvador, and the scenery is really breathtaking,” he said, adding:
“So here we have a president who is breaking new ground, like a top CEO, rolling out innovation. He believes in it: he bought the dip, as everyone should be.”
In response to the downturn, Spanos stated that “there’s effectively an auction as a result of the dip, which will almost certainly prove to be a great move.”
At the time of writing, the price of bitcoin is approaching $46,400. As previously reported by Cointelegraph, Bitcoin was closing in on $53,000 on Tuesday, the day El Salvador legalized bitcoin as legal tender, before experiencing a precipitous plunge to $43,000 the following day.