The worlds’ leading banking giant Goldman Sachs makes a debut in the cryptocurrency market by opening a trading desk next year. If successful, it may revolutionize the banking industry.
The importance of the decision is based on trading patterns observed in Wall Street in 2017. Cryptocurrencies have been slowly gaining a foothold and pulled several institutions to the crypto platform. Latest to be pulled into the fold is two US exchanges -CBOE and CME
According to the latest report by Bloomberg, the financial giant plans to set up a cryptocurrency trading desk by the middle of next year. A financial framework of how this can be actualized by the bank is being crafted including asset storage which is central to the success of this arrangement.
Bitcoin, which is the market leader in the crypto market, has been doing rounds with retail investors for a long time. However, major investors have been reluctant to embrace Bitcoin due to huge volatility and price swings.
Goldman Sachs is the first to venture into the cryptocurrency market by immediately clearing Bitcoin future contracts offered by CBOE and CME. Other banks keenly watching the space include Citigroup and Bank of America with a view to offering an avenue for trading in the future.
Bloomberg reported that Goldman Sachs is already assembling a team in New York to specifically handle the crypto platform once it is fully operational. It is not yet clear where the trading desk will be placed but insiders say it may operate within the fixed income, currencies and commodities unit. The firms’ strategic investment group manual indicated that the firm is “…also looking at other opportunities in a similar space”, an insider Darren Cohen commented.
Goldman spokesman Michael Duvaley in response to a question from a client was of the view that the bank has a keen interest in serving clients interested in the cryptocurrency market. However, Goldman CEO Lloyd Blankfein has been sceptical about the success of Bitcoin and the cryptocurrency space arguing that it is riddled with a lot of volatility, hence the need to tread carefully as they observe market trends.
Currently, the bearish run may not last and investors are cautious in their predictions.
After Bitcoin hit a high of $20,000, it has dipped by a huge margin, slipping to $12,800 within 24 hours. Trading volumes stand at $18 billion as the market capitalization of Bitcoin slipped to $215 billion down from $300 billion last week. Other celebrated currencies such as Ethereum, Litecoin and Ripple have suffered a similar dip.
Many analysts fear there could be a market bubble and are sending alarm bells to investors to remain alive to this reality. Depending on one’s view, Goldman could either be late to the party or getting in before the next leg higher. We are of the opinion that Bitcoin will end 2018 around $50,000.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of Henning Klokkerasen via Flickr
Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…
Wisebitcoin Launches Professional-Grade Crypto Exchange
Infrastructure is developing rapidly in the cryptocurrency industry, but the recent launch of the Wisebitcoin cryptocurrency exchange is nonetheless significant in terms of the immediate value it provides to cryptocurrency users. That’s because the exchange has had a beta version available since 2018 while continuing further developments in stealth mode, and already serves over 1.2 million end users with $6+ billion in 24 hour trading volume at the time of its official launch.
In addition to the large user base and deep liquidity, Wisebitcoin also stands out by offering up to 100x leverage to margin traders, with the ability to open a long or short position in their futures market. In the current bullish environment, leverage is a key way that experienced traders increase their exposure and try to profit from volatility.
For example, if a user opened a long position on ETH on January 2nd at a price of $750, they could have greatly multiplied their profits with even a small amount of leverage such as 5x as ETH reached over $1,100 within 48 hours. A simple unleveraged position would have netted $350 in profit, but a 5x position would have netted $1,750 and a 100x leveraged position would have netted an incredible $35,000 in profits from an initial investment of just $750.
Beyond leverage, Wisebitcoin additionally offers a simple and…