Goldman Sachs predicted that Bitcoin’s value could surpass $100,000. According to the global investment bank, bitcoin is expected to continue taking market share from gold with increased adoption of cryptocurrency.
Goldman Sachs’ Bitcoin vs Gold Prediction
Zach Pandl from Goldman Sachs, who is co-head for global foreign currency strategy at Goldman Sachs, gave clients Tuesday a report outlining the outlook for Bitcoin.
An analyst at Goldman Sachs believes that Bitcoin will take away market share from Gold in 2022, as more people adopt cryptocurrencies. Details are in the research note:
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. The note states that this market has a value of $2.6 trillion.
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. He added:
It is possible to compare bitcoin’s market capitalization and gold, which can be used as a guideline for possible 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 has relaunched their cryptocurrency trading desk. Goldman Sachs expanded its crypto offerings to include ether options and futures in June.
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