Bitcoin snapped a two-day losing streak as it continues to march back toward the $50,000 level.
Despite bitcoin's struggles over the past month, analysts are still optimistic it will break out as the year goes on.
Goldman Sachs’ co-head of foreign exchange strategy Zach Pandl says bitcoin can snag market share from gold over time as a "byproduct" of more adoption along with the potential from "Bitcoin-specific scaling solutions," according to a research note reported by Coindesk.
"Hypothetically, if Bitcoin’s share of the ‘store of value’ market were to rise to 50% over the next five years (with no growth in overall demand for stores of value) its price would increase to just over $100,000, for a compound annualized return of 17-18% (accounting for growth in Bitcoin supply over time)," Pandl wrote in the note.
In other cryptocurrency news, El Salvador's government will send to its Congress about 20 bills covering financial markets and investment in securities to provide a legal foundation for issuing bitcoin bonds, according to Reuters.
Finance Minister Alejandro Zelaya said on Tuesday, the government was drawing up the legislation to create a framework to cover corresponding market regulation and issuance of securities in crypto assets after the Central American country said in November it would issue bitcoin bonds.
In September, El Salvador became the world's first country to make bitcoin legal tender alongside the U.S. dollar.