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Goldman Sachs had predicted that the price of Bitcoin might reach $100,000. The global investment bank believes that as the adoption rate of cryptocurrencies grows, Bitcoin will continue to take market share from gold.
Goldman Sachs’ Bitcoin and Gold predictions
Goldman Sachs analyst and co-head of global foreign exchange strategy Zach Pandl outlined the future prospects of Bitcoin in a research report to clients on Tuesday.
Goldman Sachs analysts predict that as cryptocurrencies are more widely adopted, Bitcoin will continue to take market share from gold in 2022. Details of research notes:
The application of Bitcoin may not only be a “store of value”-but the digital asset market is much larger than Bitcoin.
The analyst pointed out that Bitcoin’s circulating market value is currently less than 700 billion U.S. dollars. Cryptocurrencies account for 20% of the “store of value” market, including gold and Bitcoin. The note explained that this market is worth approximately US$2.6 trillion.
Goldman Sachs stated in its 2022 forecast list that over time, Bitcoin “is likely” to become larger.
Pandl stated that if Bitcoin’s share of the store of value market “assume” increases to 50% in the next five years, then Bitcoin Will increase to slightly more than $100,000. The analyst added:
We believe that comparing its market value to gold can help determine a reasonable outcome for Bitcoin’s return.
In addition, Goldman Sachs analysts pointed out that even though the resource consumption of the Bitcoin network may become an obstacle to institutional adoption, it will not prevent demand for the asset, the report said.
Goldman Sachs restarted its cryptocurrency trading desk last year. In June, the company Unfold Its cryptocurrency products include ether futures and options.
Do you agree with Goldman Sachs’ views on Bitcoin and gold? Please let us know in the comments section below.
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