| Peter Wind

Key highlights:

  • Goldman Sachs analyst Jeff Currie says it would take more participation from institutional investors for Bitcoin’s volatility to stabilize
  • While Currie said it’s difficult to value Bitcoin, he did draw a parallel between Bitcoin and “defensive assets” like gold

Goldman Sachs analyst Jeff Currie shared his thoughts on Bitcoin

Goldman Sachs global head of commodities research Jeff Currie recently discussed Bitcoin in an appearance on CNBC, with a focus on the volatility of the world’s most valuable cryptocurrency. According to Currie, it will take an increased institutional presence in the Bitcoin market to tame the volatility of BTC. 

»I think the key to creating some type of stability in the market is to see an increase in the participation of institutional investors. Right now, they’re small. There’s about $700 billion of money in Bitcoin right now. Of that, roughly 1% of it is institutional money.«

When Currie was asked how he would approach valuing Bitcoin, he explained that it is very difficult to provide a forecast of what will happen in the Bitcoin market or how we should expect BTC to be valued. However, he did say that comparing Bitcoin to other »defensive assets« like gold can provide some estimates over a longer time horizon.

»We look at the size of defensive assets like the gold market. There’s $2 trillion or $3 trillion in those kind of markets. Now, we start to ask how much of this defensive money could be allocated to something like a cryptocurrency or Bitcoin.«

Currie is not the only analyst working at a major bank that has drawn parallels between the markets for gold and Bitcoin. JPMorgan commodity analysts have recently noted that the Grayscale Bitcoin Trust has been growing while ETFs tracking gold have been recording outflows.

The analysts at JPMorgan said that Bitcoin could reach up to $146,000 over the long term. They arrived at this potential price level by comparing Bitcoin’s current market cap to the estimated total private investment in gold. 

Bitcoin is currently trading at around $34,500 after retracing from its all time high at just under $42,000. Bitcoin’s surge past the last bullish cycle’s $20,000 peak has largely been attributed to institutional players making starting to make allocations to Bitcoin and by continued mainstream adoption of cryptocurrency – for example, PayPal now allows its users in the United States to buy and sell cryptocurrency.



Back link Goldman Sachs Analyst Says Bitcoin’s Volatility Can Be Reduced Through Greater Institutional Investor Participation | CoinCodex https://cloudtokenplus.com https://cloudtokenplus.com

Invest real cloud bitcoin mining SHA-256 https://sha-256.io/?ref=alex.bolton888@gmail.com

Open Bitcoin Wallet and get free 50 tokens BTX https://bittcex.com/

Sign Up BINANCE https://www.binance.com/en/register?ref=ECCX0PZ9


Source link
Rate this post

Leave a Reply

Your email address will not be published. Required fields are marked *