Goldman Sachs Predicts Gold Will Be at $2,300 in 12 Months, What Does It Mean for Bitcoin

By stevo muchoki | Crypto mind game | 12 Aug 2020


Goldman Sachs Group Inc. (NYSE: GS), an American multinational investment bank and also a financial services company has today predicted that gold price will hit $2,300 in twelve months. At the time of publication, the instrument was trading around $1938, having added around 1.35% in the past 24 hours.

However, our main concern lingers on what the prediction entails for the Bitcoin and also the crypto market at large. Both gold and bitcoin have one thing in common, they are largely regarded as safe haven assets especially times of market uncertainty.

Previous research conducted by media outlet, Bloomberg indicates that bitcoin market price is sixfold gold price. 
Stabilizing at about 6x the per-ounce price of gold, Bitcoin's increasing correlation and declining volatility relative to the precious metal indicate an enduring relationship for price advancement, in our view. Unparalleled global central-bank easing should remain a tailwind for the quasi-currencies,Bloomberg stated.

If we are to go by this prediction, then we can expect Bitcoin price to hit all time high in twelve months.

in addition, with bitcoin being the mother coin, it largely influences altcoins rally, hence pulling with it most altcoins.

With the continued institutional investors confidence in the crypto industry, the correlation is likely to increase from sixfold as the demand of the asset increase with diminishing market supply.

 

How do you rate this article?


10

0

stevo muchoki
stevo muchoki

Take it easy! Lets all win!


Crypto mind game
Crypto mind game

With thousands of digital assets already in the market, confusion, scam and FOMO is a major setback in investing. The answer and the ultimate power lies within you.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.