Bitcoin prices have retreated recently — but Goldman Sachs still sees strong gains ahead in the coming years.
The world’s most valuable cryptocurrency has dropped to about $46,000 after hitting a record nearly $69,000 in November.
Even so, Goldman Sachs said in a report this week that bitcoin could more than double, to just over $100,000 per currency, over the next five years.
“We believe bitcoin’s market share will likely increase over time as a by-product of broader adoption of digital assets,” said Zach Pandl, co-director of foreign exchange, rates and emerging market strategy at Goldman Sachs, in the report.
Pandl argues that bitcoin will increasingly steal market share from gold, which has stagnated at around $1,800 an ounce.
He said that bitcoin currently accounts for about 20% of the so-called “value reserve”, a term used to describe gold, bitcoin and other alternative assets such as currencies and commodities whose prices —in theory— shouldn’t depreciate too much. over the period of time.
Pandl believes that bitcoin could eventually represent 50% of the stock market reserve, which could raise bitcoin by 17% to 18% annually over the next five years to reach the $100,000 level.
“We think that comparing its market capitalization with gold can help to establish parameters on plausible outcomes for bitcoin returns,” added Pandl.
Of course bitcoin and other important cryptos like ethereum, binance, solana and meme tokens like dogecoin and shiba inu were extremely volatile in the past year.
Cryptoactives are behaving more like stocks than currencies right now.
Still, a growing number of top fund managers, including Stanley Druckenmiller, Paul Tudor Jones and George Soros, have invested in bitcoin.
Regulators have approved exchange-traded funds that track bitcoin futures prices as well, making it even easier for individual investors to dive.
This content was originally created in English.
original version
Reference: CNN Brasil
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