Goldman Sachs has predicted that the worth of bitcoin may attain $100,000. The world funding financial institution believes that bitcoin will proceed to take market share away from gold as cryptocurrency adoption grows.
Goldman Sachs’ Bitcoin vs Gold Prediction
Goldman Sachs analyst Zach Pandl, co-head of world overseas trade technique, outlined the longer term outlook for bitcoin in a analysis observe to shoppers Tuesday.
The Goldman Sachs analyst expects that bitcoin will proceed to take market share away from gold in 2022 as cryptocurrencies turn into extra broadly adopted. The analysis observe particulars:
Bitcoin could have functions past merely a ‘store of value’ — and digital asset markets are a lot greater than bitcoin.
The analyst famous that bitcoin’s float-adjusted market capitalization is at the moment underneath $700 billion. The cryptocurrency accounts for a 20% share of the “store of value” market, which includes gold and bitcoin. This market is value about $2.6 trillion, the observe explains.
In its listing of 2022 predictions, Goldman Sachs stated bitcoin will “most likely” turn into a much bigger proportion over time.
Pandl stated that if bitcoin’s share of the shop of worth market had been “hypothetically” to improve to 50% over the following 5 years, the worth of BTC would improve to simply over $100,000. The analyst added:
We suppose that evaluating its market capitalization to gold can assist put parameters on believable outcomes for bitcoin returns.
Furthermore, the Goldman Sachs analyst identified that although the Bitcoin community’s consumption of assets could also be an impediment to institutional adoption, it is not going to cease the demand for the asset, the observe stated.
Goldman Sachs relaunched its cryptocurrency buying and selling desk final 12 months. In June, the agency expanded its cryptocurrency choices to embody ether futures and choices.
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