Bitcoin (BTC) Price Could Reach $100K, Goldman Sachs Says

UTC by Steve Muchoki · 3 min read
Bitcoin (BTC) Price Could Reach $100K, Goldman Sachs Says
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According to the bank, the public holds approximately $2.6 trillion of gold that is very likely to be consumed by Bitcoin in the next few years.

The fight over the king of ‘Store of Value’ between Bitcoin and gold continues. Meanwhile, gold leads in market capitalization over the former. However, analysts at Goldman Sachs Group Inc (NYSE: GS) think the situation will not remain permanent for long as Bitcoin is eating away gold’s portion.

Consequently, the bank thinks the psychological $100,000 is hypothetically viable in the next few years.

“Hypothetically, if Bitcoin’s share of 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 increase to just over $100,000, for a compound annualized return of 17-18% (accounting for growth in Bitcoin supply over time),” Goldman Sachs’ co-head of foreign exchange strategy Zach Pandl indicated in a note on Tuesday.

According to the bank, the public holds approximately $2.6 trillion of gold that is very likely to be consumed by Bitcoin in the next few years.

Bitcoin Price Future Growth Prospects from a Different Standpoint

However, it is worth noting that the Gold market price is both Fundamentally and technically ready for retesting new all-time high. Speaking to CNBC, David Lennox thinks gold could reach $2,100 this year, solely fueled by increased inflation, particularly the Greenback.

“We do think across the course of 2022, we will see the gold price testing at the record highs, but we can’t see it traveling much beyond that once it gets there,” Lennox said.

Furthermore, the United States has experienced huge inflation over the past few months. Whereby it is close to 6% up from approximately 1%.

“We do believe that high momentum in inflation and that lower US dollar is going to drive the gold price higher in 2022,” he added.

The ongoing geopolitical uncertainty, particularly between supper powers, could kickstart gold’s rally earlier than expected.

Arguably, should gold’s market cap rise as the price scales to a new all-time high, that of Bitcoin could be ready to rise to the next level. More so since governments, who are the largest controllers of gold, have begun to shine their focus on crypto, especially Bitcoin.

According to market analytics provided by CoinGecko, Bitcoin gained approximately 46.2% in the past year. On the other hand, Gold is down approximately 6.43% in the past year according to data from TradingView.

Notably, Bitcoin traded around $46k at the time of reporting whilst gold exchanged hands at around $1,824.

Only time could vindicate the bank’s call on Bitcoin. However, with Justin Sun and El Salvador at the forefront of blockchain development at the county level, the chances of fruition are higher.

Bitcoin News, Commodities & Futures, Cryptocurrency News, Market News, News
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