Goldman Sachs Argues with Narrative That Bitcoin’s Bull Run Could Harm Gold

Since its creation, Bitcoin (BTC) has gotten compared to gold (XAU) because of some similarities, like limited supply. Although Bitcoin has struggled to live up to that comparison in the past, it has done tremendously well to bridge the gap as corporate investors adopt the benchmark cryptocurrency.

Meanwhile, many institutions have gone as far as labeling BTC as ‘gold 2.0’ and have asserted that the crypto could take the place of the precious metal soon. Goldman Sachs (NYSE: GS) has since come out to argue that the ‘replacement’ narrative is far-fetched and that both assets could co-exist and thrive.

According to a Bloomberg report, the New York-headquartered investment behemoth refuted claims that Bitcoin’s recent bull rally and new all-time high records could harm gold. Nonetheless, the multinational investment bank admitted that funds have been seeping out of gold and into BTC recently.

Goldmann Sachs, a vocal critic of Bitcoin in the past, added that wealthy investors are still avoiding BTC due to “transparency issues.”

Meanwhile, JPMorgan Chase & Co (NYSE: JPM) has recently declared an opposite prediction on gold and BTC, reporting that wealth was getting transferred from gold’s ETFs to the cryptocurrency. JPM asserted that gold might suffer from the shift of funds. The investment bank cited the recent widespread corporate adoption of BTC as a decent sign.

Key BTC Levels to Watch — December 18

As we proposed in our last analysis, Bitcoin has recorded a healthy pullback and is now in consolidation. The consolidation range spans between $23,375 and $22,380. That said, we expect the cryptocurrency to resume its ascent soon. Our hour MACD indicator is a testimony to the impending spike.

Regardless, BTC could extend its decline even further to lower support levels.

Meanwhile, our key resistance levels are at $23,000, $23,275, and $23,781. While our key support levels are at $22,420, $21,750, and $21,000.

Total market capital: $647 billion

Bitcoin market capital: $423 billion

Bitcoin dominance: 65.3%

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