Bitcoin has yet again come in the green as prices move a bit upwards after days of downward momentum. However, according to the latest report of Goldman Sachs, the prices are expected to further decline in the future.
Bitcoin [BTC] makes recovery, eyeing $7,500
Bitcoin is currently trading in the green after days of an onslaught from bears. With a 1.02 percent rise in the past 24 hours, Bitcoin is changing hands at $7,450 at the time of writing. However, the world’s leading cryptocurrency has lost over 62 percent of its value since it touched the peak at about $20,000 in December, last year.
At the beginning of this week, Bitcoin started in green as the past two weeks have Bitcoin prices surge above $8,000. But this entire week, the bears have its claws into the prices that took prices below $7,500.
Yesterday, the temporary volatility at OKEx, one of the biggest exchanges injected 2500 BTC that accompanied the price drop.
With NYSE’s parent company all set to launch a platform for bitcoin, the market seems to welcome the greens back. Bitcoin is yet again eying $7,500 before making its way to the psychologically important $8,000 level.
Cryptos getting more than warranted attention
But Goldman Sachs, the leading global investment, and banking company are not at all optimistic of the bitcoin price in the near future. According to its mid-year economic report, “cryptocurrency mania” will create an unsteady market for the rest of this year.
Earlier this year, Goldman Sachs made headlines by announcing its plans to open a bitcoin trading desk. But looks like it isn’t sold on cryptocurrency yet.
Highlighting the six factors contributing to the unsteady economic-outlook, one of them is “bitcoin and cryptocurrency mania”. The investment strategy group of the bank is expecting the price of bitcoin to further decline more than what it already has in the past seven months.
The report points out that,
“cryptocurrencies would not retain value in their current incarnation remains intact and in fact borne out much sooner than we expected,”
“We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency.”
Sharmin Mossavar-Rahmani, the chief investment officer of the private wealth management group at Goldman also stated,
“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. In fact, we believe that they garner far more traditional media and social media attention than is warranted.”
Bitcoin (BTC) price has again registered gains, small they might be as the report of big names viz. NYSE parent company, Intercontinental exchange, Google, and Starbucks officially enter the crypto market.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.