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Bitcoin at $100K still in play said Goldman Sachs but, there's a catch

Updated: Aug 31, 2024
Published: Jan 6, 2022
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Bitcoin (BTC), the world's biggest cryptocurrency, dropped below $43,000 as the Fear and Greed Index from Alternative.me says that investors are in a state of extreme fear. As per a recent report, Goldman Sachs, an American multinational investment bank, said that BTC at $100,000 is still possible and not a distant dream.

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Bitcoin at $100K?

Goldman Sachs believes that it is very much possible for Bitcoin to reach $100K soon. As per the report, the investment bank said that if BTC replaces gold as the biggest "store of value," it can actually achieve the price of $100K.

In order for Bitcoin to replace gold, which currently has a market cap of about $2.8 trillion, BTC needs to break above the market cap of gold. Bitcoin's current market cap is somewhere around $800 billion, and it needs to grow by more than four times to defeat gold as the store of value.

The report cited Zach Pandl's, co-head of global FX and EM strategy, in a note written on Tuesday and said that "if Bitcoin's share of the store of value market were 'hypothetically' to rise to 50% over the next five years, its price would increase to just over $100,000, for a compound annualized return of 17% or 18%."

BTC flipped bearish

Bitcoin prices slipped below the important support zone of $53,000 in November and then dropped further below $43,000 on January 5th. The continuous bearish movement of the token is not what investors expected, and hence, the state of extreme fear has set in. 

In a recent interview, Bloomberg's market analyst, Eddie van der Walt, said that Bitcoin has gone mainstream and is a major financial tool for many reasons.

"We've now got ETFs, we have IPOs in the space, and futures contracts that are fairly liquid… There's now a financial infrastructure out there that has made it open to institutional investors, and they have taken on Bitcoin," said Walt. 
He believes that the future of cryptocurrencies is "very interesting," and good things will follow in the long term.

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