Goldman Sachs predicts Bitcoin could hit $100k
Within the next 5 years
According to Goldman Sachs Group, Bitcoin will reach $100,000 if it continues to take market share from gold as a store of value.
Goldman analysts estimate that Bitcoin’s float-adjusted market capitalization is just under $700 billion. That accounts for a 20% share of the “store of value” market which is comprised of Bitcoin and gold. The value of gold that’s available for investment is estimated at $2.6 trillion.
If Bitcoin’s share of the store of value market ever rises over 50% over the next five years, its price would reach just over $100,000, marking a compound annualized return of around 18%, co-head of global FX and EM strategy, wrote in a note on Tuesday.
"Bitcoin may have applications beyond simply a "store of value" - and digital asset markets are much bigger than Bitcoin - but we think that comparing its market capitalization to gold can help put parameters on plausible outcomes for Bitcoin returns," Pandl wrote.
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