Cryptocurrency News

Goldman Sachs Claims Ethereum will Hit $8k this Year

Ethereum is doing better than great as it has been consistently trading above $4K, which is pretty amazing in itself. Bitcoin, on the other hand, was fluctuating here and there as the performance and price deteriorated every other day and came back about $60K in its doing. Ethereum, on the other hand, has managed to secure its ground till now, but no one knows of the future. According to the managing director of Goldman Sachs, Ethereum might be able to value itself at $8K before the end of 2021.

He says that the driving force behind it would be the current inflation and the rising momentum with which it is affecting the world’s economy. There exists a correlation between the cryptocurrencies and inflation rates on a global level; both affect each other in a direct proportion; when inflation rises, the value of crypto increases as investors are pushed towards selecting the assets for the sake of investment which could prove to be a very nice hedge against inflation.

Goldman Sachs is Optimistic about Crypto Performance

At this time, it is the better market conditions for crypto assets that are proving a very important hedge against inflation as the conventional markets are pretty badly affected as inflation goes on. The crypto market doesn’t act or work as the conventional markets do, it is the very ensemble of volatility which means the price of an asset could be kissing the sky, and the next moment it would come crashing down, this is how uncertain the crypto market and decentralization are. But when there is global inflation out there, and conventional markets are bleeding, this is the time when the crypto market and cryptocurrencies thrive.

It is extremely practical and very noticeable when we bring into account the condition of the crypto market when there is no inflation as it does show some returns but not in an ecstatic or consistent manner; there are always corrections catching up with cryptocurrencies and driving their price into the negative value. But when there is inflation on the streets and the economic status of word changes to a negative value crypto market starts turning profit not only consistently but in gigantic proportions. That is why it is expected that the price of Ethereum will be able to secure $8K by the end of 2021 if things progress at the same rate.

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