MENU

Goldman Sachs warns that the bitcoin (BTC) price could fall 35%

Although it has recovered some of its overnight declines, the bitcoin (BTC) price is still down 5% since this time yesterday to US$9,155.44 according to Coin Market Cap.

This means that the world’s largest cryptocurrency has lost 21% of its value in the space of a week, leaving it with a reduced market capitalisation of approximately US$154.9 billion.

Where next for bitcoin?

The bulls believe that bitcoin is free to push higher now after the “Tokyo Whale” finished selling US$400 million worth of coins.

The so-called Tokyo Whale refers to the trustee looking after the defunct Tokyo bitcoin exchange Mt. Gox. According to CNBC, this person has sold more than 35,000 bitcoin to pay off creditors in recent times. This is believed to have weighed heavily on price action.

Although Mt Gox is still in possession of a significant amount of bitcoin, any further selling is believed to be on hold for the foreseeable future.

However, not everyone is bullish on bitcoin. A note out of Goldman Sachs has warned that the cryptocurrency could drop to below US$6,000 again.

Analyst Sheba Jafari has stated that if the BTC price were to fall to between US$7,000 and US$7,500 per coin, its technical analysis indicates that it would then be likely to drop below US$6,000 soon after.

If bitcoin were to fall to this level, it would mean a decline of approximately 35% from the current price.

What about the other cryptocurrencies?

As the majority of cryptocurrencies tend to move together, Goldman’s prediction would almost certainly be bad news for the likes of Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). Which could make buying either of these cryptocurrencies quite risky at present.

But finally, it is worth pointing out that many analysts have predicted declines that never eventuated. Whether this time is different, time will tell.

One thing that I think is easy to predict, though, is how big this next major investment opportunity will be...

The Richest Man Alive Invests in This

The richest man in the world has just launched a $100 million investment fund and investors who don't take note could miss out on a massive opportunity.

And it isn't by sheer luck. He did it by looking to the future and investing in the big ideas of tomorrow.

This could be your chance to get in on the ground floor!

Click here to discover more!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.