Leading investment bank Goldman Sachs launched a new cryptocurrency trading desk in 2021 and continues building on it. The investment bank remains bullish on the broader cryptocurrency market, especially on Bitcoin and Ethereum. Bitcoin skyrocketed in price in mid-March reaching a new all-time high of $73,737. However, BTC is now cooling down in price and dipped to the $62,851 price range on Wednesday.
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The Bitcoin ETF is what led to the cryptocurrency market rally this month and print new highs. Institutional investors purchased billions worth of BTC ETF through trillion-dollar asset management firms like BlackRock, Greyscale, and Fidelity, among others. In this article, we will highlight a prediction of Bitcoin and the overall cryptocurrency market provided by Goldman Sachs.
Goldman Sachs: Bitcoin & The Cryptocurrency Market Will Attract More Buying Pressure From Financial Institutions
Investment bank Goldman Sachs is confident in the prospects of Bitcoin and the broader cryptocurrency market. Mathew McDermott, the Head of Digital Assets at Goldman Sachs said that the SEC approving the Bitcoin ETF prompted a “psychological shift” among institutional investors.
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McDermott explained that the appetite to own Bitcoin and has transformed and will only increase in the coming years. “The price action has still been driven by retails primarily. But it’s the institutions that we’ve started to see come in. You really see now the appetite has transformed,” he said at the Digital Asset Summit (DAS) conference in London.
He also explained that many more asset classes could get tokenized and become a part of the larger cryptocurrency market. “I do think over time we’ll start to see more asset classes get tokenized and actually get some scale. But maybe that’s one or two years down the line,” he said.
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The Goldman Sachs banker commended the sea of change as institutions are now open to investing in the cryptocurrency market. “Last year was tough but just coming through to this year we’ve seen a big sea-change not only in terms of the types of clients but also in terms of volumes,” he summed it up.