The crypto market has turned into a bloodbath; Bitcoin price dropped to a 3-month low on January 5, 2022. Despite the drop in Bitcoin price, Goldman Sachs analysts are optimistic about the asset’s upside potential.
Goldman Sachs believes Bitcoin could reach $100,000 by 2022
Bitcoin price dropped below $44,000 for the first time in three months, raising concerns among investors. Fear and greed index, which is accepted as an indicator of traders’ emotions, reached ‘extreme fear’.
According to data from crypto platform Coinglass, $500 million was liquidated within hours of the Bitcoin price drop. Some community members believe that meeting reports issued by Federal Reserve officials, reflecting concerns about high inflation, fueled the asset’s price decline. Bitcoin is considered a hedge against inflation. Therefore, fears of a spike in inflation and resurgent numbers over a period of time have had a negative impact on Bitcoin prices.
Bitcoin price is in a downtrend; however, analysts and strategists at Goldman Sachs believe in the asset’s recovery potential. Zach Pandl, head of global FX and EM strategy at Goldman Sachs, told Bloomberg in an interview that there could be a bullish run for Bitcoin. According to Pandl, if Bitcoin’s share of the “store of value” market “hypothetically” rises to 50 percent in the next five years, its price could rise to just over $100,000 with an overall annual return of 17 percent or 18 percent.
Earlier this week, the global investment firm predicted that the price of Bitcoin could reach $100,000 by 2022.
@_Checkmatey_, also a crypto analyst, states that there has been an increase in Bitcoin withdrawn from exchanges and sent to the cold wallet. The analyst predicts a reversal in the Bitcoin price trend.
Thanks for the cheap sats, anon.$BTC sent straight to cold storage, just like all of these coins.
Love me a good old divergence. Let it run as hot and deep as you want, the reversal will be swift and powerful.
Have seen this movie before. pic.twitter.com/V0VUQt882k
— _Checkmate.btc 🔑⚡🦬🌋checkonchain.com🌋 (@_Checkmatey_) January 5, 2022
A different analyst and trader, @ShardiB2, observed that the current Bitcoin price trend is similar to the three examples recorded in 2021, where investors were accumulating the bottom and waiting for time to pass.
There have only been 3 times in the last year that we got more oversold on the 4hr than now…and each time we rally, even if we failed later on.
Point is, now is not the time to sell or short IMO, that time has passed, now we buy dips or wait pic.twitter.com/8tOPFjn09I
— Don’t Follow Shardi B If You Hate Money $UST (@ShardiB2) January 6, 2022
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.