xrp crypto value

Goldman Sachs Reveals Huge Bitcoin Price Prediction After Ethereum Bet

Goldman Sachs Reveals Huge Bitcoin Price Prediction After Ethereum Bet
Written by publisher team

Bitcoin and cryptocurrency had a terrible start to 2022, continuing their downward trend from the end of last year as price pressures escalated.

Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover the latest releases of NFT and new Crypto Blockbusters poised for 1,000% gains.

Bitcoin’s price has lost about 40% since its November peak, dropping from around $70,000 per bitcoin to this week’s low of $41,000. Meanwhile, Ethereum and other major currencies have also fallen, wiping out nearly $1 trillion from the value of the cryptocurrency market since its November peak.

Now, Wall Street giant Goldman Sachs

She predicted that bitcoin would increasingly compete with gold as a “store of value” – and could reach $100,000 within five years.

Register now, for free Codex—Daily cryptocurrency newsletter. We help you understand the world of bitcoin and cryptocurrency every day of the week

“Bitcoin may have applications beyond a mere ‘store of value’ – and the digital asset market is much larger than Bitcoin – but we believe that comparing its market capitalization to gold can help set standards for reasonable results for Bitcoin returns,” Zach Bandel, Associate – Head of Foreign Exchange Strategy at Goldman Sachs, wrote in a research note. Bitcoin’s market capitalization is currently around $800 billion compared to $11.4 trillion for gold.

“Hypothetically, if the share of bitcoin in the store of value market were to rise to 50% over the next five years (with no growth in overall demand for stores of value), its price would rise to just over $100,000, for a compound annual return. of 17% to 18%”.

Bitcoin’s reputation as a digital store of value similar to gold has been boosted by the high inflation that has hit economies around the world over the past year. In May 2020, famed investor Paul Tudor Jones put bitcoin firmly on the map of Wall Streets when he called it “the fastest horse to beat inflation.”

Hung Fang, CEO of cryptocurrency exchange Okcoin said in comments via email, noting the scarcity of bitcoin with the steady supply of 21 million coins, its digital robustness and accessibility, as well as its resistance to censorship.

“Bitcoin is not just an asset class – the Bitcoin network has proven to be a viable global payment network, with Bitcoin serving as a programmable money,” Fang added. “In 2022, we will continue to see bitcoin establish itself not only as a store of value, but also as a medium of exchange and a unit of account.”

The price of Bitcoin has surged just over 400% since January 2020, leading to an asset price boom that has pushed stock markets to all-time highs — and helped the price of Ethereum outpace Bitcoin.

Last year, a leaked Goldman Sachs report predicted that Ethereum, the second-largest cryptocurrency after Bitcoin, had a “high chance” of overtaking Bitcoin as a “dominant” store of value – dubbed “Amazon”.

of information. “Investors have piled into Ethereum over the past two years as rising interest in decentralized finance (DeFi) and the ongoing madness of the non-fungible token (NFT) drive the price of Ether higher.

Codex—Free daily newsletter for cryptocurrency enthusiasts

More from ForbesWhy Bitcoin Billionaire and Ethereum Skeptics Suddenly Turned Over and Predict Cryptocurrency Prices

Bitcoin’s success over the past few years has prompted companies and countries alike to start experimenting with it like never before. MicroStrategy Business Intelligence Software Company

Leading the way in converting his cash reserves into bitcoin – inspired Tesla CEO Elon Musk

, to add $1.5 billion worth of bitcoin to the electric car maker’s balance sheet in January 2021.

Michael Saylor, CEO of MicroStrategy, has predicted that Bitcoin will eventually reach $6 million.

Meanwhile, the Central American nation of El Salvador has adopted bitcoin as a national currency alongside the US dollar as part of a plan to integrate bitcoin into its economy and society.


About the author

publisher team