Bitcoin To Hit $7,900, Says Goldman Sachs

Despite a recent $600 drop in bitcoin, Goldman Sachs believes that the digital currency will hit new records, according to news from CNBC.

“The market has shown evidence of an impulsive rally since breaking above 6,044,” Sheba Jafari, vice president on the bank’s FICC Market Strats team, said in a Sunday note. “Next in focus [$]7,941. Might consolidate there before continuing higher.”

Bitcoin hit a record high of $7,601.53 over the weekend before dropping below $7,000 on Sunday. It was trading around $7,092 Monday afternoon, leaving room for about 12 percent in gains to Jafari’s $7,941 level.

This price would mark the third of “five-waves up” for bitcoin, with Jafari saying in August that bitcoin was riding a “fifth wave” of an “impulsive” rally that could run as high as $4,827 before falling as low as $2,221. The five-wave principle of technical analysis on markets is known as the “Elliott wave.” In July, though, the Elliott Wave Theorist newsletter said bitcoin is “making a final fifth wave from six cents.”

A major factor in the recent gains was last week’s announcement that the world’s largest futures exchange, CME, will launch bitcoin futures by the end of the year. And bitcoin trade in Japanese yen now accounts for about 60 percent of trading volume.

Yet last month, Goldman Sachs compared key characteristics of gold and bitcoin and revealed that when it comes to being assessed on the majority of the key characteristics of money, gold is the clear winner.

And JPMorgan’s CEO, Jamie Dimon, said during an investor conference in New York that bitcoin “is a fraud,” predicting that the cryptocurrency would soon implode.

“The currency isn’t going to work,” the executive said. “You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”