Goldman Sachs Sees Maturing Bitcoin Market
Jeff Currie, Global Head of Commodity Analysis at Goldman Sachs, told CNBC this week that the bitcoin market is getting more mature. Noting that Bitcoin’s price is “very difficult to predict” due to the level of market instability and uncertainty, Goldman Sachs, Head of Commodity Analysis, said:
“I think the market is beginning to become more mature. I think in any nascent market you get that volatility and those risks that are associated with it.”
Bitcoin’s price just recovered to the $40K range after taking a nosedive Sunday night, losing billions from its market value. It rose from a low of $36,811 to a high of $40,015 on Thursday, earning around 8.7 per cent. At the time of publication, BTC traded $39,583 and its market value approached $736 billion.
Currie further opined:
The key to creating some type of stability in the market is to see an increase in the participation of institutional investors and right now they’re small.
Currie added that “institutional money” still accounts for “about 1 percent” of bitcoin’s market cap. Meanwhile, Bitcointreasuries.org, a platform that tracks well-known corporations owning bitcoin, reveals that a total of 1,171,889 BTCs are owned by public companies and pension funds. This amounts to more than $46 billion, or around 6% of bitcoin’s overall market value.
However, the number of Bitcoin institutional investors in their portfolios has grown. Several studies indicate increasing institutional appetite for BTC, such as the Fidelity study, which showed that almost 80 per cent of the 800 institutional investors surveyed found crypto assets appealing. Among recent bitcoin institutional investors are Microstrategy, Ruffer, Skybridge, and Massmutual.
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