Goldman Sachs: Bitcoin asking for $100,000 is entirely possible and will continue to steal gold's market share

As digital assets begin to gain widespread acceptance, bitcoin will continue to steal market share from gold, and it's entirely possible that the currency could reach $100,000, Goldman Sachs said in a report.

Goldman Sachs expects bitcoin to have a float-adjusted market capitalization of just under $700 billion, or 20% of the so-called "store of value" market, compared with about $2.6 trillion in gold available for investment.

If bitcoin's share of the "store of value" market rises to 50% over the next five years, the currency is likely to reach $100,000, with a compound annual return of 17%-18%, Zach Pandl, co-head of global foreign exchange and emerging markets strategy at Goldman Sachs, wrote in the report.

Bitcoin has long been known as "digital gold," and investors have been buying it as a hedge against inflation in the last year.

As of writing, bitcoin is up 0.21% in 24 hours at $46,430.