Goldman Sachs has always been vocal about their affection/deflection for Bitcoin and other crypto assets; creating headlines time an again. This time around, the American investment giant made the news by announcing that as per them the prices of Bitcoins will continue to drop and that cryptocurrencies aren’t able to fulfill the “store of value” idea that it wanted to claim.
This announcement came at a time when Bitcoin’s price is already down 60% from its all-time high. Already the analysts aren’t able to clearly predict about the price movement from here onwards and Goldman Sachs adds in some more pessimism. Although this doesn’t come as a surprise as the firm often expresses its doubts about BTC prices. However, this week their reason for being bearish on Bitcoin’s price is a bit more specific. While they listed out several reasons to back their prediction, it mainly focuses on the buying rush, outsized media attention, and the newness of many coins that are shunning them from retaining, or containing, value.
Interestingly, the firm still remains committed to its own traders and investors having access to invest in virtual currencies. So maybe this is just the firms attempt to draw attention towards the need for more regulation in the crypto world. While at it, Goldman Sachs also points out that despite the spike in attention from 2017 until now, Bitcoin and other cryptocurrencies still represents a very small portion of worldwide wealth and money transfers. In their words:
“Such declines will not negatively impact the performance of financial assets because cryptocurrencies represent just 0.3 percent of world GDP as of mid-2018.In fact, we believe that they garner far more traditional media and social media attention than is warranted.”
Only time and patience can tell whether the firm is on point or has missed it all together. All we know is that Goldman Sachs along with other Wall Street and International firms are interested in trading cryptocurrencies despite their apprehensions, as their customers are intrigued about adding these coins to their portfolios.
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