InstaForex

November 3, 2021

Goldman Sachs Expectations Make Ethereum Owners Excited! Here's why!

 Multinational investment bank Goldman Sachs today published the findings of their analysis stating that Ethereum (ETH) has a probability of that to double by 2022.


Managing Director of financial institutions - Bernhard Rzymelk justified the prediction because he saw a correlation between cryptocurrency assets and global inflation. Based on the data the increase in inflation has driven up the price of cryptocurrencies.


In the latest details, Goldman Sachs top executives predict that ETHC could rise to $ 8,000 by the end of the year. According to them, crypto assets have been trading in line with inflation since 2019. The comparison chart below reflects this:


USD Inflation Swap 2Y2Y Forward.



A few days ago, the second largest crypto asset hit an all -time high of $ 4,460. Despite rising more than 5x since the beginning of the year, Goldman Sachs is proposing more profits in the next two months. Analysts note that ether could reach $ 8,000 if the correlation with FWD inflation continues.


Rzymelka added that the entire landscape of crypto assets has matured in recent years and now investors can fully benefit from rising inflation.


On the other hand, PayPal co -founder Peter Thiel also believes that rising cryptocurrency asset prices indicate that large economies are facing financial problems. When the BTC exceeds $ 60,000, the global economy is in a state of crisis.


Goldman Sachs also sees the blockchain network behind ETH has the best actual usage potential while adding that it is the most popular development platform for smart contract applications.