Goldman Sachs Says Bitcoin Maturing as an Asset But Institutional Money Still Only a Fraction

By Prashant Jha
January 12, 2021 Updated January 12, 2021
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Goldman Sach, the American banking investment giant sees Bitcoin as a maturing asset that has drawn institutional interest in its present bull run. Jeff Currie, the Global Head of Commodities Research at Goldman Sachs in his recent interview with CNBC said that the rising institutional interest in bitcoin suggests its status as a maturing asset, however, the flow of institutional money is still very low.

“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.”

“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, roughly 1% of it is institutional money.”

Bitcoin in its current bull run has turned many former critiques into an admirer where many even see it replacing gold in near future. The top cryptocurrency has drawn a great deal of institutional interest this bull run which includes Grayscale, Pay Pal, MicroStrategy, and Square.

Institutional Inflow Has Just Started for Bitcoin

The ongoing bull run especially at the start when it broke the key resistance of $20,000 to surpass its previous all-time-high was believed to be carried by institutions as they overbought bitcoin fueling its price further.

The top cryptocurrency’s recent market correction leading to a 28% price crash brought back the volatility debate which gave the likes of Peter Schiff another chance to take a swipe at the best performing asset of the previous year.

The market correction even though quite significant to the outside world did not come as a big surprise to many veteran bitcoin traders who have often claimed that a market pullback of about 30% is anticipated in a bull market.

The institutions capital contribution might look just a fraction but it is important to note that they only began to show interest post halving in May last year, probably realizing the scarcity which leads to a FOMO

2021 could be the year when institutions start adopting bitcoin just like MicroStrategy and Grayscale who already see it as a new inflation hedge.

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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