Ethereum Could Hit $8,000 This Year, According to Goldman Sachs
Ethereum (ETH), one of the biggest crypto tokens in the market, is most likely to hit $8,000 by the end of this year, according to analysts from Goldman Sachs. This prediction has been made based on the crypto token’s historical association with inflation.
A strategist from the global investment bank said that if Ether, the Ethereum network’s cryptocurrency, continues tracking inflations, it will certainly see a surge of 80%. He added that this token is pro-cyclical, meaning it tends to increase when the economy improves.
Bernhard Rzymelka, the managing director of the global markets at Goldman Sachs, noted that cryptocurrencies have closely tracked inflation over the last few years. He found a strong correlation between the Bloomberg Galaxy Crypto index and a market-oriented measure of inflation predictions after comparing the two.
On Tuesday, Ether surged to $4,500, an all-time high value. This latest pattern indicates that the token is either attaining the beginning of an accelerating rally or exhausting. The recent increase in inflation break-even indicates an upside threat if the top relationship of the latest episode holds.
The growth of Decentralized Finance (DeFi) has aided the Ethereum rally. The Ethereum rally is hyped for its possible disruption of the global financial system by eradicating the requirement for middlemen like remittance providers, banks, and other such players. Further, the Non-Fungible Tokens’ (NFT) boom has seen several new projects using Ether and leaping on to the Ethereum blockchain.
According to Goldman Sachs’ analysts, Ether seems like a crypto token with the highest potential for real use as the Ethereum platform is the most famous development portal for smart contract apps. What is your opinion on the predictions laid down by the global investment bank? Share your views in the comments section below.