The Bitcoin price could still reach $100,000 after an underwhelming year
Goldman Sachs recently predicted that the price of Bitcoin could reach $100,000.
The U.S. banking giant estimates that the largest cryptocurrency currently accounts for a fifth of the global store of value market. Hence, the Bitcoin price could reach the six-figure territory if it continues chipping away at gold’s market share.
In late December, Fundstrat’s Tom Lee predicted that the largest cryptocurrency could skyrocket to $200,000.
Bitcoin evangelist Max Keiser sees the price hitting $220,000 this year due to the network’s rapidly growing hashrate.
Legendary investor Ray Dalio, however, sees limited upside for Bitcoin. In a recent interview with Lex Fridman, he predicted that the price of the largest cryptocurrency was unlikely to exceed 20 percent of the gold market cap that excludes jewelry and central bank holdings.
MicroStrategy CEO Michael Saylor, however, sees the Bitcoin price surging to $600,000.
Underwhelming performance
While Bitcoin gained roughly 60% last year, its performance paled in comparison to the majority of altcoins and even some major companies.
Joe Weisenthal, co-host of the Odd Lots podcast, recently noted that the Apple stock actually managed to outperform Bitcoin in 2021 despite facing significantly less volatility.
Moreover, Bitcoin’s risk-adjusted returns are much lower compared to real estate and the benchmark S&P 500 index.
Meanwhile, gold recently recorded its worst year since 2015 amid a global economic recovery that has dramatically reduced demand for the go-to safe-haven asset.
The U.S. Federal Reserve is expected to announce two interest rate hikes this year, which many analysts claim won’t bode well for the prices of risk assets like Bitcoin since they have largely benefited from unprecedented money printing.