BiTPAL

Bitcoin to consolidate at $8,000 according to Goldman Sachs

Bitcoin continued its upward trend earlier this month to reach record highs, breaking the $7,000 barrier. As unexpected as this may be, banking giant Goldman Sachs has recently issued its prediction, stating that the cryptocurrency is set to consolidate at around $8,000.

Vice president of Goldman Sachs’ FICC market strategies team, Sheba Jafari, issued the forecast this weekend. Jafari is quoted in a report from Coin Telegraph as stating: “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.”

However, it should be noted that only a few months ago Jafari made a very different prediction for the future of bitcoin, suggesting that the cryptocurrency may hit highs of around $4,800 – but going on to say that it would go on to drop to within the approximate region of $2,200.

It’s safe to say that Jafari no longer predicts that bitcoin is heading for a major downturn. Not only does she project that it will consolidate around $8,000, but that it is likely to increase even further in value. This seemingly being in the face of the increases seen throughout the course of 2017.

However, there are still conflicting opinions in the banking world as to the future of bitcoin. James Dimon, CEO of JPMorgan Chase, stated his rather pessimistic view on CNBC, suggesting that bitcoin is a “fraud”.

Dimon went on to say that any trader working for JPMorgan Chase was “stupid” – in spite of the banking group itself investigating blockchain technology.

It was only one month ago, in light of Bitcoin enjoying periods of exponential growth, that Kenneth Rogoff, chief economist at Harvard University, stated that the cryptocurrency’s price could not continue increasing indefinitely. Rogoff went on to cite potential governmental restrictions as a threat to the cryptocurrency’s future.

There are still many questions left to be answered regarding Bitcoin’s future. However, Jafari’s comments this weekend suggest that even those in doubt as to Bitcoin’s fate are starting to change their opinion.