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Goldman Sachs believes that Bitcoin might reach $100,000 by eroding gold’s market share
Bitcoin (BTC) failed to finish 2021 above the long-anticipated $100,000 threshold, but analysts say the psychological horizon may still be reached by capturing gold’s market share, although over a longer time frame.
Goldman Sachs co-head of global FX and EM strategy Zach Pandl hypothesized in a note to investors on Tuesday that if the largest cryptocurrency could overtake 50% of the store of value market share over the next five years, BTC price would rise to just over $100,000, representing an 18% compound annualized return.
While the current market capitalization of BTC is close to $884 billion, Goldman Sachs believes that the float-adjusted market capitalization of Bitcoin is less than $700 billion, accounting for one-fifth of the “store of value” market. However, the market is hardly overcrowded. Gold is the only other player in Goldman’s store of value market, with a $2.6 trillion available investment.
Despite its ups and downs, Bitcoin managed to top Goldman Sachs’ 2021 return scoreboard with yearly returns of more than 60%. Gold is at the bottom of the same chart, with a 4% annual loss.
Goldman Sachs analysts believe that the heated discussion about the Bitcoin network’s energy consumption will have no impact on…
