Goldman Sachs Says Bitcoin Price Will Continue Dropping

· 06 Aug 2018 in Crypto News

Goldman Sachs has had a complicated relationship with Bitcoin and other crypto assets—dating back years but seen in full complication in 2017. Then, in the matter of one month it announced that it saw Bitcoin has “not the new gold” and too volatile, followed by an announcement shortly thereafter that they would open a Bitcoin trading desk.

This week, the giant American investment firm, made another headline-making announcement that it thinks Bitcoin prices will continue to drop, and that cryptocurrencies have not fulfilled the “store of value” idea many have claimed.

Bitcoin’s price is already down 60% from its all-time high, and analysts are continuing to send mixed messages about the price movement from here. Goldman Sachs’ words certainly paint a pessimistic tone for BTC price, but the firm has continuously expressed its doubts about Bitcoin’s value (as it relates to its trading price), so the news is not shocking. More of the same from Goldman, though this week they were a bit more specific on why they’re bearish on Bitcoin’s price.

The company listed out several reasons to back their thinking up; but mainly focused on the outsized media attention, buying rush, and the newness of many coins which are preventing them from retaining, or containing, value.

Still, the firm has remained committed to its own traders and investors having access to investing in these commodities, so perhaps the call for a downward price reflects the firm’s desire for more regulation in the crypto world.

Goldman also pointed out that Bitcoin and other cryptocurrencies, despite the spike in attention from 2017 until now, still represent a very small portion of worldwide wealth and money transfers.

In their words:

“Such declines will not negatively impact the performance of financial assets because cryptocurrencies represent just 0.3 percent of world GDP as of mid-2018,” she said. “In fact, we believe that they garner far more traditional media and social media attention than is warranted.”

Whether Goldman is right or wrong remains to be seen. What we do know is that despite their apprehensions, they, along with other Wall Street and International firms, are interested in trading cryptocurrencies, and their customers are intrigued about adding these coins to their portfolios.

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