Goldman Sachs has said that Ethereum (ETH) has now become a viable hedge against inflation. The price of ETH is likely to rise to US $8,000 by the end of 2021.
Goldman Sachs, one of the leading investment banks in the world, has predicted that the price of Ethereum (ETH) can double in the coming months. ETH price is hovering around US $4,500 at press time, and it could rise to US $8,000 per ETH by the end of 2021.
The Global Markets managing director of Goldman Sachs, Bernhard Rzymelka, has said in a research note that the second-largest cryptocurrency in terms of market cap has come up as a viable hedge against inflation. This will likely increase its demand significantly in the coming months, making the value of each ETH rise to as high as US$8,000 by 2021-end.
His note also mentions that the trend since 2019 shows that digital assets tend to trade in line with inflation breakevens. It is this aspect that has helped the prices of cryptocurrencies to hit new highs in the crypto market in the last couple of years.
Goldman Sachs’s Bernhard Rzymelka has used the Bloomberg Galaxy Crypto Index and a USD 2-year forward 2-year inflation swap as a reference point to underscore the point that Ethereum can be used with Bitcoin to hedge your risks against rising inflation. The note said:
"The local backdrop looks supportive for Ethereum… The latest spike in inflation breakevens suggests upside risk if the leading relationship of recent episodes was to hold. "
In the last 30 days, the price of each ETH has increased by more than 30%, to US $4,500. In the last 24-hours, the ETH price has increased by 5.55% to US$4,592.89.