Goldman Sachs, one of the world’s largest banks, joins the list of analysts predicting the price of Bitcoin could reach US$100,000, according to a report by Bloomberg.

Fast facts

  • According to Goldman Sachs estimates, Bitcoin’s float-adjusted market capitalization is just shy of US$700 billion, which accounts for a 20% share of the “store of value” market consisting of Bitcoin and gold. Approximately $2.6 trillion worth of gold is available for investments, Goldman estimates.
  • Therefore, if Bitcoin’s share of the market “hypothetically” grows to 50% over the next five years, its price would increase to just over US$100,000, Zach Pandl, co-head of global FX and EM strategy at Goldman Sachs, wrote in a note on Tuesday. Bitcoin’s price reaching the US$100,000 mark would mean a compound annualized return of 17% or 18%, the Bloomberg report added.
  • Several analysts have predicted that Bitcoin’s price will reach the US$100,000 mark. For instance, Bloomberg’s Crypto Outlook report in June last year predicted the price of Bitcoin could reach US$100,000 by the end of 2021. Billionaire venture capitalist and Bitcoin trader Tim Draper predicted last year that Bitcoin’s price will hit US$200,000 by the end of 2022 or early 2023. Tom Lee, managing partner at Fundstrat Global Advisors, also predicted similar movement in Bitcoin’s price. Compared to these estimates and predictions, Goldman’s Bitcoin price estimate is highly conservative as it sees Bitcoin reaching US$100,000 in five years instead of one year.
  • According to the Goldman Sachs note, demand for Bitcoin will continue to grow despite the concerns around Bitcoin’s environmental impact that can hinder institutional adoption.
  • At the time of publication, Bitcoin was trading at US$46,458.39, according to CoinGecko data. Bitcoin price gained over 40% last year but its performance was far behind altcoins like Ethereum, which gained over 200% in 2021.