Goldman Sachs Predicts BTC Future Price Drop
Goldman Sachs, one of the largest investment banks in the world, might just launch their own crypto-desk trading service, however, this in no way entails that the company is going to hop onto Bitcoin’s side and provide bullish support.
Following Goldman Sachs’ half-year economic report, strategists at the firm have foreseen a possible Bitcoin will continue dropping in price, even with its drop from the all-time high of $20000 on the market and almost $12000 in price lost.
The company’s CIO, Sharmin Mossavar Rahmani stated that the firm prediction of instability with cryptocurrencies is still strong and has occurred much faster than any could expect. Additionally, the report stated that Goldman Sachs is prepared for even more continuous drops in the near future due to the fact that no digital currency consists of the fundamental aspects that define something as a legitimate currency. Three aspects make up the definition of a currency, that being a method of exchange, a qualified measurement unit and a store of value.
As per reports, the CIO and other analysts have cast predictions that January would see heavy drops in cryptocurrency prices and the coins would not be able to maintain their value for long. Although this provided negativity towards Bitcoin and the currency’s enthusiasts, the company then essentially “sugar-coated” concerns regarding a probable crypto-market crisis and that it would not affect other equity markets and stated that the media has hyped up cryptocurrencies and paid more attention towards them than needed.
A Minor Percentage
Adding on, the company has stated that it firmly believes in no direct and harmful impact to other monetary assets due to the fact that digital currencies only accumulate for 0.3 percent of the entire global gross domestic product so far. Analysts continue by saying that more attention on social media and other outlets is being paid to these currencies than they require, essentially overhyping any impact they may have, be it negative or positive.
Despite its reputation and successful track record, not many other Wall Street giants stand beside Goldman Sachs’ decision and predictions. ICE, the largest stock exchange on earth, revealed new plans to found another company with a dedicated mission of spreading Bitcoin adoption as a legitimate currency.