Bitcoin might have taken a serious decline but the analyst of the global investment bank is still strong on the Bitcoin ecosystem to hit $10 trillion in 10-15 years. He emphasizes that Goldman postponing Bitcoin trading desk is of no concern, institutional investor interest is already here as the market is expecting two things in near-term.
Bitcoin down in short-term, the long-term still up for $10 trillion
The market might have taken a serious dump in the past 24-hours breaking below the $6,500 at $6,424, down by over 12 percent. This has the entire crypto market crash from $238 billion yesterday to today’s $202 billion, the loss of $36 billion.
Goldman Sachs postponing Bitcoin trading desk plans might have further triggered the drop along with millions of worth of bitcoin being sold in the market that has the sellers dominating the trading space. Though it has been expected by the experts that Bitcoin will see a more downward momentum, one analyst remains essentially bullish.
Mitch Stevens, a research analyst at RBC Capital markets, a global investment bank and part of Royal Bank of Canada (RBC) recently shared his bullish views on the crypto market. Earlier this year, he had said,
“By utilizing decentralized computing and open source software, we see a multi-trillion dollar market emerging.”
He had estimated a $10 trillion market in the next 10-15 years while experiencing a lot of ups and downs on the way. The estimate came from “taking a third of the roughly $30 trillion in assets held in offshore funds and gold, as investors embrace digital currencies as a new store of value.”
Goldman Sachs news is of no concern
This time, Stevens reaffirmed on his analysis despite Goldman Sachs postponing the Bitcoin trading desk. In his interview with CNBC, he shared how Goldman’s decision in no way means institutional investors are getting cold feet about Bitcoin, explaining:
“So, I don’t think it is a big concern… All the institutional investors I speak with that have been involved for the last five years or so, they are still involved in the space… they still track it very closely.”
He also shared how Goldman Sachs is already involved in the crypto market and is further working on moving forward:
“So, what I think Goldman is having a hard time with is they can’t really find a way to get Institutional investors to invest. So, specifically, they are invested in Circle, which is essentially a competitor to Coinbase… So, they are already able to get trading flows on the retail side. What they are realizing now is probably the next step to get institutional money, waiting for a Bitcoin ETF to get approved.”
Everything is on track, Bitcoin has a long way to go
As for his $10 trillion market cap for the bitcoin ecosystem, he is very much standing strong on it replying with a simple “NO” to if he has even changed his calculations according to the developments and price fluctuations of the market.
Talking about the short term, he mentioned things that are the focus in near term:
“It’s venture capital, you look at 10-15 years. But if you look at near-term dynamics as to why the trade was negative this year, waiting for two things, looking for an ETF to get approved, in order to get it approved, the only underlying Bitcoin. The last time 9 ETF that were denied didn’t actually own any bitcoin in their base of future pricings like Gold ETN.”
He further added:
“There’s one more negative thing that needs to happen that all the funds that raised money in q4 last year, at the highs of the cryptocurrency hedge fund, they’ll probably start shutting down.”
He concluded with “from technical perspective everything is on track” which is given for the crypto ecosystem as prices fluctuate quite constantly.
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Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.