Goldman Sachs: Ethereum will Reach $8,000 by the End of 2021
The Managing Director of investment giant Goldman Sachs believes that Ethereum is going to keep undergoing price gains for a long time. It is worth noting that the silver crypto that is the second-largest cryptocurrency by market cap has recently registered a new ATH at $4,477 per unit. Goldman Sachs analyst has shared some technical proof that Ethereum can double in price.
The report shared by Bernard Rzymelka shows that the price movement of Ethereum has been tracing the pattern of inflation for the last two years. As per the report published by Rzymelka, the two quantities have managed to remain in direct proportion for a considerable amount of time.
Inflation is Increasing
Rzymelka used the FWDs inflation index by Bloomberg Galaxy Crypto Index and matched it side by side with the graph of Ethereum prices. He used the data as far back as two years to prove his analysis. He told the media recently that the increase in Ethereum prices is a major indicator of a consistent increase in inflation in the USA. He further explained that if the ETH continues to trace the inflation pattern, it is going to balloon to $8K per unit before long.
It is interesting to note that PayPal co-founder Peter Thiel also seems to think in the same manner. Thiel recently told media that Bitcoin reclaiming $66K means that the central banks in the United States are nearing bankruptcy. He also claims that the global economy that is dependent on the centralized financial structure has entered a state of crisis, and therefore the cryptocurrency prices are soaring.
Goldman Sachs has displayed a highly favourable behaviour towards Ethereum and its co-founder Vitalik Buterin recently. A few months ago, one report published by a Goldman Sachs expert claimed that Ethereum is going to surpass Bitcoin eventually. This favour, however, seems to be based on the fact that Ethereum offers a lot of practical use cases.
At present, most investors put their bets on Bitcoin as the top store of value. However, the flagship cryptocurrency has received criticism from several investors and developers for the lack of utility that it offers. As per the Goldman Sachs report, the Ethereum blockchain is the number one choice for the developers for smart contracts programs and applications.
