Goldman Sachs Predicts Bitcoin Could Reach $100K as BTC Continues to Take Gold’s Market Share as Store of Value

Goldman Sachs Predicts Bitcoin Could Reach $100K as BTC Continues to Take Gold's Market Share

Goldman Sachs has predicted that the price of bitcoin could reach $100,000. The global investment bank believes that bitcoin will continue 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 global foreign exchange strategy, outlined the future outlook for bitcoin in a research note to clients Tuesday.

The Goldman Sachs analyst expects that bitcoin will continue to take market share away from gold in 2022 as cryptocurrencies become more widely adopted. The research note details:

Bitcoin may have applications beyond simply a ‘store of value’ — and digital asset markets are much bigger than bitcoin.

The analyst noted that bitcoin’s float-adjusted market capitalization is currently under $700 billion. The cryptocurrency accounts for a 20% share of the “store of value” market, which comprises gold and bitcoin. This market is worth about $2.6 trillion, the note explains.

In its list of 2022 predictions, Goldman Sachs said bitcoin will “most likely” become a bigger proportion over time.

Pandl said that if bitcoin’s share of the store of value market were “hypothetically” to increase to 50% over the next five years, the price of BTC would increase to just over $100,000. The analyst added:

We think that comparing its market capitalization to gold can help put parameters on plausible outcomes for bitcoin returns.

Furthermore, the Goldman Sachs analyst pointed out that even though the Bitcoin network’s consumption of resources may be an obstacle to institutional adoption, it will not stop the demand for the asset, the note said.

Goldman Sachs relaunched its cryptocurrency trading desk last year. In June, the firm expanded its cryptocurrency offerings to include ether futures and options.

Do you agree with Goldman Sachs about bitcoin and gold? Let us know in the comments section below.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

New Strategic Partner for CheersLand: Medabots

Cheerlands has made an announcement about its partnership with Medabots, which is one of the best GameFi projects across the world. So it is the new strategic partner, and both of them will be working together in terms of cross-marketing, staking, working with tournament organizations, and competitions to grow each other’s projects in various ways.

FTX Ventures to Support Development of Product Categories

The segment of technology services is going through a phase of comprehensive transformation. Many competitive players are entering into the segment, and as a result, all stakeholders, including customers and investors, are getting access to new-age services and technology products. The organization is now gearing to make the future of the ongoing web3 Revolution even

Sphynx Labs Is Looking Forward to Integrating with Chainlink

Sphynx Labs, called the decentralized exchange, is officially integrating three different decentralized services, Chainlink, the leading network of Oracle, in a decentralized manner. Sphynx is working towards the enhancement of functions in its platform by- Using Chainlink VRF to verify that its drawing games are provably fair. Working with Chainlink Keepers to provide additional stop-loss

SundaeSwap and the ISO to Go LIVE on Thursday

The long-awaited moment has arrived! The information about the launch of  SundaeSwap DEX is presented in an easy-to-understand format below. Important Dates and Points to Remember: SundaeSwap will go live as a completely operational beta decentralized exchange on 20 January Thursday. The 1st round of ISO prizes will be determined on 25 January Tuesday. To