Bitcoin price has recently bounced back – but Goldman Sachs still sees strong gains in the coming years.
The world’s most valuable cryptocurrency has dropped to nearly $43,000 after hitting a record high of $69,000 in November. Yet Goldman Sachs (GS) said in a report this week that bitcoin (XBT) could more than double in the next five years, to a little over $100,000 per coin.
Zach Pandal, co-head of global foreign exchange, rates and emerging markets strategy for Goldman Sachs, said in tGoldman Sachs predicts bitcoin could hit $100,000he report, “We expect bitcoin’s market share to increase over time as a byproduct of widespread adoption of digital assets. “
Pandal argues that bitcoin will rapidly steal market share from gold, which has stalled at around $1,800 an ounce.
He added that bitcoin currently makes up about 20% of the market for so-called “stores of value”, a term used to describe currencies and commodities such as gold, bitcoin and other alternative assets whose prices – in theory – There should not be more depreciation in the long run. The period of time.
Pandal believes that bitcoin could eventually make up 50% of the market’s store of value, which could see bitcoin rise to the $100,000 level by 17% annually to 18% over the next five years.
“We think comparing its market capitalization to gold can help parameterize the potential outcomes for bitcoin returns,” Pandal said.
Of course, bitcoin and other top cryptos such as Ethereum, Binance, Solana and meme tokens such as Dogecoin and Shiba Inu have been extremely volatile over the past year. Cryptos are behaving more like stocks than currencies at this point.
Nevertheless, a growing number of top fund managers, including Stanley Druckenmiller, Paul Tudor Jones and George Soros, have invested in bitcoin. Regulators have approved exchange-traded funds that also track bitcoin futures prices, making it even easier for individual investors to dive in.