Bitcoin
Goldman Sachs Group Inc (NYSE:GS) Introducing Cryptocurrencies to Wall Street
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.
We will be updating our subscribers as soon as we know more. For the latest on cryptocurrencies, sign up below!
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 price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
-
Blogs6 years agoBitcoin Cash (BCH) and Ripple (XRP) Headed to Expansion with Revolut
-
Blogs6 years agoAnother Bank Joins Ripple! The first ever bank in Oman to be a part of RippleNet
-
Blogs6 years agoStandard Chartered Plans on Extending the Use of Ripple (XRP) Network
-
Blogs6 years agoElectroneum (ETN) New Mining App Set For Mass Adoption
-
Don't Miss6 years agoRipple’s five new partnerships are mouthwatering
-
Blogs6 years agoCryptocurrency is paving new avenues for content creators to explore
-
Blogs6 years agoEthereum Classic (ETC) Is Aiming To Align With Ethereum (ETH)
-
Blogs6 years agoLitecoin (LTC) Becomes Compatible with Blocknet while Getting Listed on Gemini Exchange
