Goldman Sachs Believes Bitcoin Will Consolidate at $8,000
During the last few months, Goldman Sachs, one of the world’s leading global investment banks has issued a couple of statements about the future of Bitcoin and other digital currencies. As Bitcoin continued its growth throughout the month of October and reached new all-time highs at the beginning of November, Goldman Sachs issued a statement saying that Bitcoin will likely consolidate around the value of $8,000.
The forecast, made this last weekend by the vice president of the FICC market strategies firm belonging to the investment bank, mentions that: “The market has shown evidence of an impulsive rally since breaking above 6,044 (…) next in focus $7,941. Might consolidate there before continuing higher.”
It is important to point out the fact that yet another prediction was made by the very same person a couple of months ago, when it was suggested that the digital currency will likely hit a high of $4,800, yet then lose value and consolidate to around $2,000. However, the recent price surges have shown that the coin is aiming even higher, and it seems like the Goldman Sachs experts are now well-aware of this.
While the CEO of the company, Lloyd Blankfein reportedly has a level of discomfort associated with the cryptocurrency, he did mention that he is open to it, which is a good move, considering the fact that not long ago, the CEO of JPMorgan mentioned that the digital currency is only a fraud.
Additionally, numerous similar statements were made as well, with some people predicting highs of over $15,000 and $20,000 during the next three years. Considering the price surges that Bitcoin has seen, such a price increase could definitely be possible even faster than that.
There are however analysts who believe that the Segwit2x hard fork that will take place soon will hurt the value of the digital currency, as it will likely split it in two different chains once again. At this time, it is unsure what effect this will have on the digital currency. This is so, because in the past, bitcoin has suffered several other hard forks, thus giving birth to alternative currencies such as Bitcoin Cash or Bitcoin Gold. When this happened, Bitcoin ended up increasing in value considerably, so the history of hard forks should also be kept in mind when determining whether the upcoming Segwit2x will affect the coin’s value. 