Despite today’s crash, for Goldman Sachs Bitcoin at 100K is still feasible

According to the bank, the public is most likely to spend about $ 2.6 trillion in gold on bitcoin in the next few years.

The fight for the title value store continues between bitcoin and gold. Meanwhile, gold leads in market capitalization of the former. However, analysts at Goldman Sachs believe that the situation will not last long, because bitcoin is eating away from the share of gold.

Therefore, the bank believes that the psychological threshold of $ 100,000 is likely to be in the coming months or years.

” Hypothetically, if Bitcoin’s share of the “value stores” market grew to 50% over the next five years (with no growth in total demand for value stores), its price would jump to just over $ 100,000. , for compound. annual return of 17-18% (taking into account Bitcoin supply growth over time)“, Said Zach Pandl, co – head of currency strategy at Goldman Sachs, in a note on Tuesday.

According to the bank, the public is most likely to spend about $ 2.6 trillion in gold on bitcoin in the next few years.

Bitcoin price growth prospect from a different perspective

However, it should be noted that the market price of gold is constantly on the verge of reaching a new high. Expert David Lennox thinks the gold could hit $ 2,100 this year, driven only by increased inflation.

” We believe that we will see the all – time highlights of the gold test over the year 2022, but we do not see that it will go much further when it is there.“Mr Lennox said.

Also, the United States has been experiencing massive inflation over the past few months. It went from about 1% to almost 6%.

” We believe that strong inflation momentum and a weaker US dollar will push the price of gold higher in 2022“, he said.

The current geopolitical uncertainty, especially between the warring powers, could lead to the mobilization of gold sooner than expected.

You would think that if the market capitalization of gold rises as the new price ever reaches a new level, the price of bitcoin may be ready to break through to a new level. Especially since governments, which are the biggest gold regulators, have started to set their sights on crypto, especially bitcoin.

According to market analysts provided by CoinGecko, bitcoin gained about 46.2% last year. Gold, on the other hand, is down about 6.43% over the past year, according to data from TradingView.

In particular, bitcoin is trading at around $ 46,000 and gold was trading at around $ 1,824.

Only time could justify the bank’s decision on bitcoin.