America’s oldest bank BNY Mellon (NYSE:BK) 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 (NYSE:JPM) 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.