One of the world’s top financial firms believes that top crypto asset Bitcoin (BTC) can breach a key psychological price benchmark by taking market share from a competing store of value.
In a new article, Bloomberg reveals that a Goldman Sachs Group report lays out how Bitcoin might surpass $100,000 as it encroaches upon gold’s market cap.
Goldman Sachs calculates that if Bitcoin delivers a compound annualized return of around 17% over the next five years as investors continue to adopt cryptocurrencies, then BTC could reach the $100,00 price target.
At approximately $700 billion float-adjusted market cap in the “store of value” market, Bitcoin currently makes up just 20% against gold’s value of $2.6 trillion.
Bloomberg reports that Bitcoin and gold are often grouped as hedges against inflated fiat currencies, despite not offering inherent returns, such as interest or dividends.
At time of writing, BTC is down 3.15% to $44,530. The crypto asset last touched the $50,000 level on December 27th.
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Source: https://dailyhodl.com/2022/01/06/banking-giant-goldman-sachs-says-bitcoin-can-break-100000-under-this-condition-report/