Goldman Sachs strategists believe Bitcoin price could see upside in short-term


  • Zach Pandl, head of global FX and EM strategy at Goldman Sachs Group, believes that there could be an upside for Bitcoin price in the short-term. 
  • Bitcoin price dropped below $44,000 in response to the Federal Reserve’s discomfort with high inflation. 
  • Analysts at Goldman recently predicted that Bitcoin price could hit $100,000 in 2022. 
  • Bitcoin price has historically reacted negatively to inflation concerns since it is considered a hedge against it. 

The crypto market suffered a bloodbath; Bitcoin price plunged to a 3-month low on January 5, 2022. Despite the Bitcoin price drop, Goldman Sachs analysts are bullish on the asset’s upside potential. 

Goldman Sachs believes Bitcoin could hit $100,000 in 2022

Bitcoin price dropped below $44,000 for the first time in three months, raising concerns among investors. The fear and greed index, considered an indicator of traders’ sentiments, indicates ‘extreme fear.’ This implies a bearish narrative for the asset’s price. 

Based on data from crypto intelligence platform Coinglass, $500 million worth of liquidations followed within hours of Bitcoin price drop. Proponents believe that the minutes of the meeting released by Federal Reserve officials, reflecting on their concerns on high inflation, fueled the asset’s price drop. 

Bitcoin is considered a hedge against inflation. Therefore, fear of a spike in prices over a given period of time and resurging numbers have negatively impacted Bitcoin prices. 

Bitcoin price is in a downtrend; however, analysts and strategists at Goldman Sachs believe in the asset’s potential to rebound. In an interview, Zach Pandl, head of global FX and EM strategy at Goldman Sachs, told Bloomberg that there could be an upside for Bitcoin

Earlier this week, the global investment firm predicted that Bitcoin price could hit $100,000 in 2022. 

@_Checkmatey_, a pseudonymous cryptocurrency analyst, notes the rise in Bitcoin being pulled out of exchanges and sent to cold storage. The analyst has predicted a reversal in the Bitcoin price trend. 

@ShardiB2, an analyst and trader, observed that the current Bitcoin price trend is similar to three instances noted in 2021 when investors accumulated the dip and waited for time to pass. 

FXStreet analysts have predicted that Bitcoin price could dip lower before heading to a new all-time high. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP