The world's second-largest investment bank
Goldman Sachs, the world's second-largest investment bank with a long history of opposing cryptocurrencies, recently spoke about the potential for prices to remain stable while accepting more bitcoin and cryptocurrencies, it said.
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Let's say CryptoGlobe experts Goldman Sachs recently warned that investors should not expect increased acceptance of cryptocurrencies to make them richer.
The investment firm also said its analysts expect prices to rise as acceptance increases.
Goldman Sachs analysts Zach Pandl and Isabella Rosenberg recently published a note that cryptocurrencies such as bitcoin have experienced good growth in recent years, correlating to some extent with value growth, as other asset classes have observed.
They added that the price of bitcoin appears to be positively correlated with the price of CPI-related items, such as crude oil, as well as core inflation and technology stocks.
All of these assets have real interest rates and dollar values, which have a negative correlation in global markets; that is, they move in opposite directions.
The recent selloff in the cryptocurrency market coincided with a massive selloff in the stock market, causing the Nasdaq to lose about 14% of its value in 30 days. At the same time, bitcoin has fallen by 21%.
A Goldman Sachs analyst writes
- This problem (about the acceptance of cryptocurrencies), while it may lead to an increase in prices, may also increase the correlation of cryptocurrency prices with other variables related to the financial markets.
- In this case, it is no longer possible to rely on digital currencies as an asset class to diversify the capital portfolio.
- The value of the dollar has recently been affected by contractionary monetary policy by the Federal Reserve (a decrease in the money supply) and other central banks around the world. It has increased. In addition to digital assets, the Federal Reserve's recent stance has also affected tech stocks.
- Analysts estimate that with "further development of Chinese blockchain technology, including applications in Features," the trend in cryptocurrency prices may be somewhat predictable. However, Goldman Sachs analysts said that the assets "will not be immune to macroeconomic factors, including the contractionary monetary policy of the central bank."
- These people recently estimated that if you compare Bitcoin to gold, it is used more in investments and out of market share than in anti-inflationary assets, whose price could rise to $100,000 in the future.
- The world's second-largest investment bank: rising acceptance of Bitcoin doesn't necessarily make its holders wealthy.