Goldman Sachs predicts Bitcoin could reach $100,000 as BTC continues to take gold's market share as a store of value - markets and prices

Goldman Sachs has predicted that Bitcoin price could reach $100,000. The global investment bank believes that as cryptocurrency adoption increases, Bitcoin will continue to take market share away from gold.

Goldman Sachs’ Bitcoin vs. Gold prediction

Goldman Sachs analyst Zach Pandl, co-head of global FX strategy, outlined the future outlook for Bitcoin in a research note to clients on Tuesday.

The Goldman Sachs analyst expects Bitcoin to continue taking market share away from gold in 2022 as cryptocurrencies become more widely adopted. Research note details:

Bitcoin can have applications beyond a simple “store of value” – and the markets for digital assets are much larger than Bitcoin.

The analyst noted that Bitcoin's float-adjusted market cap is currently under $700 billion. The cryptocurrency accounts for a 20% share of the “store of value” market, which includes gold and Bitcoin. This market is worth about $2.6 trillion, the note said.

In its list of 2022 predictions, Goldman Sachs said Bitcoin will “most likely” take a larger share over time.

Pandl said that if Bitcoin's share of the store of value market "hypothetically" increased to 50% in the next five years, the price of BTC would rise to just over $100,000. The analyst added:

We believe comparing its market cap to gold can help determine parameters for plausible outcomes for Bitcoin returns.

Additionally, the Goldman Sachs analyst noted that while the resource consumption of the Bitcoin network may be a barrier to institutional adoption, it will not stop demand for the asset, the note said.

Goldman Sachs relaunched its cryptocurrency trading desk last year. In June the company expanded its cryptocurrency offerings include Ether futures and options.

Do you agree with Goldman Sachs on Bitcoin and gold? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the interface between economics and cryptography.

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