While crypto assets started 2022 lower and Bitcoin is moving away from the $ 50,000 barrier, one of the largest banks on Wall Street assured that the most popular cryptocurrency will continue to take market share of gold due to a wider adoption of digital assets, which allows the projection of a price of 100,000 dollars, as reported by the news agency Bloomberg.
Goldman Sachs estimates that bitcoin’s float-adjusted market capitalization is just under $ 700 billion. That represents a 20% share of the “store of value” market, which he said is made up of cryptocurrency and gold. At the same time, he stressed that the value of the gold that is available for investment is estimated at USD 2.6 trillion.
To the bank of Wall Street, If Bitcoin’s share of the store of value market “hypothetically” rises to 50% over the next five years, its price would rise to just over $ 100,000, for an annualized compound return of 17% or 18%, he wrote Zach Pandl, co-head of global currency and emerging markets strategy, in a note Tuesday.
It should be remembered that Bitcoin rose around 60% last year. In that way, the largest digital asset by market value hit a record of almost $ 69,000 in November and increased more than 4,700% since 2016.
According to the publication, although the consumption of real resources from the Bitcoin network can be an obstacle to institutional adoption, that will not stop the demand for the asset.
“Bitcoin has long been referred to as digital gold. And the criticisms of gold tend to apply to Bitcoin as well: It doesn’t pay interest or dividends, and it doesn’t mimic the performance of more traditional assets. Proponents say that Bitcoin, like gold, serves as protection against systemic abuse of traditional currencies.”, Highlighted the publication.
Despite the good performance in 2021, the most popular virtual currency lost 2% on Monday and registered a slight rebound today on Tuesday to fall below $ 47,000.
Bitcoin remains stable with immediate supports at $ 45,500 and $ 47,000 and resistance at $ 50,000. “Rolling the dice or rolling a roulette wheel is probably as good a tool as another for forecasting price developments,” said the experts at AJ Bell.
The token probed a price floor of USD 46,000, in a zone of lows since the end of September 2021. Meanwhile, some of the main cryptocurrencies also experience declines this year.
Ether, the second-largest currency, and the Bloomberg Galaxy Crypto Index were also in the red, with a loss of more than 3% each. Smaller tokens, such as Solana, Cardano, Polkadot and Dogecoin, also lost some ground on Tuesday, according to the specialized portal CoinGecko.
Investors appear to have withdrawn from the most speculative corners of global markets of late, worried that an ebbing tide of stimulus from central banks could spell trouble. Therefore, in this context of caution, there is also some uncertainty as to how exposed they should be to Bitcoin and the broader crypto universe, given that these assets can be considered risky and are therefore the subject of a heated debate in the trading community.
For Bitcoin, in general, there is “nothing worrisome at this point,” he told Bloomberg Vijay Ayyar, vice president of corporate and international development at the Luno crypto exchange in Singapore. The outlook for the digital currency remains “bullish” if it remains close to the $ 48,000 to $ 49,000 level, he added.
In the past year, Bitcoin largely moved alongside riskier assets like U.S. stocks, although that pattern appears to be breaking in recent weeks. In this sense, the recent precedent that the S&P 500 index of the largest companies has risen approximately 5% in December, while Bitcoin lost more than 10% weighs in this regard. December was the first month since June that their performance was divergent.
Meanwhile, technical studies suggest something of a tipping point for Bitcoin after a pullback from an all-time high of nearly $ 69,000 in November, cutting its annual advance to 66% after having soared above the mark. 100% in 2021, during the price peaks of April and November.
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