Goldman Sachs thinks Bitcoin could soon be worth nearly $8,000

Bitcoin’s star seems destined to continue to rise. It has grown more than 500%in this year alone, with no sign  that trend will be abating anytime soon. It also seems to be gaining traction outside of the crypto industry, with investors hoping to catch a ride on the Bitcoin express.

Hoping to facilitate this, CME, the world’s largest exchange, recently announced their plans to launch a Bitcoin futures contract later this year. This will allow for more people to invest in the currency as they will not require an actual Bitcoin to profit from it.

Following this announcement, Bitcoin reached a record high of $7,601.53 over this weekend. After dipping below $7,000 on Sunday, it was trading $7,092 by Monday.

Goldman Sachs predicts that it will continue its upward trend to be within touching distance of the $8,000 mark

“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 on Sunday.

“Next in focus, $7,941. It might consolidate there before continuing higher,” she added.

In August this year, Jafari stated that the currency was riding the fifth and final wave, based on the Elliot Wave theory, of an “impulsive” rally with estimates that it would reach a high of $4,827 before dropping to less than half of that at $2,221.

The currency did indeed increase after that to reach $5,013 in the beginning of September. However, as China began its aggressive crackdown on digital currencies that month, Bitcoin dropped to $2,951. Jafari has now said that if Bitcoin does in fact reach a price of $7,941, it would mark the third of “five-waves up” for the currency.

In addition to being supported by CME, Japanese investors have also shown an increase in the demand of Bitcoin. Trade in the currency in Japanese yen accounts for approximately 60% of the trading volume.

The introduction of these Bitcoin futures contracts will greatly increase the currency’s investment potential. Becauseit will be based on speculation rather than purchasing the actual currency, this will eliminate counterparty risk as well as reducing the risk associated with the volatile and unpredictable crypto market. In addition, these futures might pave the way for Bitcoin ETFs sooner rather than later.

So even though Bitcoin has dropped $600 from its record high, there is still belief from one of the biggest financial institutions that there are definitely more highs for Bitcoin to chase, and ultimately reach.