$1 Trillion Crypto Crash: Goldman Sachs’ Reveals Huge Bitcoin Price Prediction After Ethereum Bet

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Bitcoin and the cryptocurrency have had a terrific start to 2022, continuing a downward trend with increasing price pressure since late last year.

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The price of bitcoin is down almost 40% since the peak in November, falling from around $70,000 per bitcoin to a low of $41,000 this week. Meanwhile, Ethereum and other major coins have also crashed back, wiping nearly $1 trillion worth from the crypto market since its November highs.

Now, Wall Street giant Goldman Sachs
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has predicted that bitcoin will increasingly compete with gold as a “store of value” – and could reach $100,000 within five years.

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“Bitcoin may have applications beyond just a “store of value” – and the digital asset market is much larger than bitcoin – but we think comparing its market capitalization to gold has plausible consequences for bitcoin returns. Having parameters can help,” wrote Zack Pandal, co-head of forex strategy at Goldman Sachs, in a research note.

“Imaginatively, if the share of bitcoin in the store of value market increases to 50% over the next five years (with no increase in the total demand for the store of value) from 17% to 18%.”

Last year, a leaked Goldman Sachs report predicted Ethereum, the second largest cryptocurrency after bitcoin, had a “high chance” of overtaking bitcoin as a “major” store of value – calling it “the Amazon”.
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of information.”

Bitcoin’s reputation as a digital store of value on par with gold has been driven by rising inflation affecting economies around the world over the past year. In May 2020, renowned investor Paul Tudor Jones put bitcoin firmly on the map of Wall Street when he named it “the fastest horse to beat inflation.”

The price of bitcoin is up a little over 400% since January 2020, triggering a rally in the asset’s price that has pushed the stock markets to all-time highs.

The success of bitcoin over the years has prompted both companies and countries to start experimenting with it like never before. Business Intelligence Software Company MicroStrategy
mstr
has led the way in converting its cash reserves to bitcoin – prompting Tesla chief executive Elon Musk
TSLA
, this time last year to add $1.5 billion worth of bitcoin to the electric car maker’s balance sheet.

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

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more from BusinesshalaWhy a Billionaire Bitcoin and Ethereum Skeptic Suddenly Just Flipped and Made a Wild Crypto Price Prediction

“Bitcoin has better monetary properties than gold, and once it reaches a critical mass of adoption as a store of value, bitcoin has the potential to grow as a global reserve currency and universal unit of account. Hong Feng, CEO of OKCoin, said in email comments, pointing to bitcoin’s shortfall through a fixed supply of 21 million coins, its digital stability and accessibility, as well as its resistance to censorship. .

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

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