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Goldman Sachs: Bitcoin could reach $100k if it takes 50% of the gold market

Goldman Sachs: Bitcoin could reach $100,000 if it takes 50% of the gold market

Goldman Sachs bank released a research report on the price of Bitcoin . According to the bank, the cryptocurrency could reach US$ 100,000 if it captures part of the market value of gold. The metal currently has US$7.8 trillion, or R$44.3 trillion at the current price.

Released on Tuesday (4), the report highlights the factors that will lead to a further rise of the BTC. In technical terms, the bank is betting on the greater adoption of cryptoactives as one of these factors. On the other hand, the growth of BTC-specific scalability solutions.

50% key value

The main graph of the study analyzes the so-called “store of value market”, which is now dominated by gold (dark blue). Based on the current market value of outstanding BTCs, cryptocurrency (light blue) represents about 20% of that total.

Gráfico do mercado de reserva de valor global. Fonte: Goldman Sachs.

However, BTC is gradually gaining share in this market. In fact, several cryptocurrency proponents, such as Paul Tudor Jones and Anthony Scaramucci, already rate BTC in the same way as gold.

With 20% of the reserve of value market, each BTC is quoted at US$46,000. According to Goldman Sachs, if cryptocurrency reaches 50% of this market, then the price could reach the magic number of $100,000.

“Hypothetically, if Bitcoin's market share encompasses 50% over the next five years, its price would increase to just over $100K. As a result, cryptocurrency would have a compound annual return between 17% and 18%,” the report said.

The current growth rate takes into account the growth of the BTC offer in the period. This rate is 900 BTC per day but will drop by half from 2024.

Uses beyond store of value

But the bank did not restrict the studies to the topic of store of value. The bank also stated that the cryptocurrency can

“Bitcoin can have applications beyond a 'value store asset markets' – and the rest of digital assets are much bigger than Bitcoin. But we think that comparing its market capitalization with gold can help put parameters into plausible outcomes for Bitcoin returns,” the bank said.

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