Goldman Sachs $100K Bitcoin Endorsement Could Buoy “Digital Gold”

Wall Street Titan Goldman

Sachs appears to be in the loop now when it comes to Bitcoin and claims that the cryptocurrency currently holds a 20% share of the “store of value” market. This means that the asset, Bitcoin, can maintain its value over time without decreasing in value, compared to precious metals or some currencies. Although the digital currency is still very volatile, trading above $46,000, it is far from its all-time high in November 2021 at $69,000. Will Goldman Sachs’ mention of Bitcoin as digital gold increase confidence in other major financial institutions to do the same?

The breakdown you need to know:

With the price of gold currently around $1,800 an ounce, bitcoin has the potential to cross $100,000 in the coming years, according to Goldman Sachs analyst Zach Bundle. He wrote that within a few years, if its market cap market share “virtually” reaches 50%, the cryptocurrency could reach this six-figure milestone.

Pandl wrote according to Reuters.

CultureBanx noted that with institutional investors like Goldman Sachs getting involved in these derivatives, they will look to ease their guard by having a reliable benchmark for their performance. A good place to start is perhaps using a commodity like gold, with the financial firm citing a market capitalization of bitcoin at $700 billion, compared to gold, which is worth $2.6 trillion as an investment.

Goldman Sachs has already allowed its wealth management clients to invest in Bitcoin and other digital assets. Its wealth management division caters to the needs of the most affluent clients, those who have a minimum investment of $25 million and want to participate in the Bitcoin business. As Goldman Sachs dips its toes into the cryptocurrency markets, Morgan Stanley

It has also started offering clients investments for the emerging asset class.

Situational awareness:

The value of Bitcoin has increased by more than 17% in the past 12 months and Goldman restarted its crypto trading desk in 2021. At first, they did not actually trade Bitcoin, and instead the bank used its own funds to trade Bitcoin futures contracts for clients. Part of the reason the company decided to go down this path was due to the many inquiries from hedge funds, foundations and endowments that received donations from Bitcoin millionaires.