general

Goldman Sachs: Adoption of cryptocurrencies is not enough to increase the price of Bitcoin

Goldman Sachs: Adoption of cryptocurrencies is not enough to increase the price of Bitcoin

The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles

Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles

Answer Goldman Sachs: Adoption of cryptocurrencies is not enough to increase the price of Bitcoin

Banking giant Goldman Sachs is contradicting the popular saying that increased adoption of cryptocurrencies will contribute to and cause the price of Bitcoin to increase.

Goldman Sachs believes that it will not be enough to increase the price of Bitcoin.

In a note to investors on Thursday, January 27, Goldman Sachs researchers Zack Bundel and Isabella Rosenberg wrote that while Bitcoin is gaining traction, its correlation with other macro assets is also on the rise.

Strong liquidations in bitcoin and cryptocurrencies often follow liquidations in the stock market.

According to Bloomberg data, Bitcoin’s correlation with the S&P 500 has reached an all-time high.

Read:Months after China banned mining activity…Bitcoin hashrate rises from all-time low

Positive correlation between Bitcoin and other assets:

The report shows that the price of Bitcoin was positively correlated with some technical stocks and crude oil prices, in addition to being affected by consumer price risks such as inflation.

On the other hand, Goldman notes that Bitcoin is negatively correlated with the dollar and real estate, and from the report also:

Recent crypto sales confirm that mainstream adoption can be a double-edged sword.

While it can raise valuations, it is also likely to raise relationships with other financial market variables, reducing the benefits of diversification for holding a new asset class.

The recent decline in the cryptocurrency market was due to the Federal Reserve hinting that interest rates will rise in the future this year due to high inflation.

Strategists at Goldman Sachs added:

Over time, further development of blockchain technology, including applications in metaverses, may provide a tailwind to valuations for some digital assets.

But these assets will not be immune to macroeconomic forces, including central bank monetary tightening.

Read:Will the “USDC” displace the “USDT” coin from the throne of the stablecoin?

Bitcoin and many other altcoins have already corrected more than 50% from their all-time highs.

Read also:

The CEO of Ripple expects that Ripple will be released to the public

Reddit joins the NFT race and begins testing the technology in profile pictures


And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time

Previous post
Turkey’s president orders research into blockchain and cryptocurrency
Next post
The CEO of Ripple expects that Ripple will be released to the public