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 $100,000 in 2022.
@_Checkmatey_, a pseudonymous cryptocurrency analyst, notes the rise in Bitcoin being pulled out of exchanges and sent to cold storage. The analyst has predicted a reversal in the Bitcoin price trend.
Thanks for the cheap sats, anon.$BTC sent straight to cold storage, just like all of these coins.
— _Checkmate.btc ⚡checkonchain.com (@_Checkmatey_) January 5, 2022
Love me a good ol 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
@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.
$BTC
— Don't Follow Shardi B If You Hate Money $UST (@ShardiB2) January 6, 2022
There have only been 3 times in the last year that we got more oversold on the 4hr than now...and each time we rallied, 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
FXStreet analysts have predicted that Bitcoin price could dip lower before heading to a new all-time high.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
