According to a Goldman Sachs board member, the investment bank is increasingly Bitcoin bullish. But the last doubts have not yet been dispelled.
Goldman Sachs customers are increasingly relying on Bitcoin. An interview with the Reuters news agency shows that the US investment bank has been gaining a strong boost in terms of cryptocurrencies for some time. According to Chief Operating Officer (COO) John Waldron, customer demand for Bitcoin and Co. is on the rise. One tries to meet the increased interest, but has to be careful to adhere to all regulatory requirements. It’s not always easy.
Last but not least, the COVID-19 pandemic is also responsible for the increased interest in digital values and online trading. After all, people these days have a lot more time for experimental investments and online shopping. It cannot be assumed that this trend will be exhausted anytime soon, according to the Goldman board of directors. On the contrary: Goldman Sachs is expecting an “explosion” in demand for digital values such as Bitcoin.
The pandemic was a major accelerator. There is no question for us that there will be more trading in digital money.
Most recently, the New York investment bank had its Bitcoin trading desk operational again. Since the beginning of March this year, customers have been able to trade BTC derivatives such as futures and forwards again. According to a recent study among Goldman customers, 40 percent of investors are already invested in crypto assets. The study also revealed a surprisingly bullish attitude among Goldman investors. 76 percent of respondents see the BTC year-end rate between $ 40,000 and $ 100,000. After all, 22 percent are even anticipating exchange rates beyond USD 100,000. So it’s no wonder that Waldron speaks of an “explosion” in crypto demand.
Goldman Sachs and Bitcoin — that was an ambivalent relationship at times. Most recently, the notorious volatility of Bitcoin met with the ranks of the major US bank. Bitcoin has “matured” but is still not stable enough, according to Global Head of Commodities Research Jeff Currie. In order for cryptocurrency to grow up, more institutional investors need to get into the market.
The key to creating some kind of stability in the market is to see an increase in institutional investor participation and right now it is small.
However, it is questionable whether the institutional demand for BTC and Co. is really still that small. After all, we receive weekly news about the entry of well-funded investors into the crypto market. For example, the Norwegian energy company Aker ASA founded a subsidiary that focuses on Bitcoin.
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