Goldman Sachs turns its back on cryptocurrencies, favouring fiat currency; a bear market forecast
Goldman Sachs, a leading investment bank with international presence in New York has expressed its unfavourable outlook towards cryptocurrencies. Goldman Sachs, the multinational company known to provide financial services, anticipates that in future valuation of cryptocurrencies will see further declination.
In the recent times, the momentum of the valuation of Bitcoin [BTC] in the crypto market has been positive. This has eventually led to a price hike of the top most cryptocurrency in the list exceeding 40% since the initial phase of July, 2018.
Goldman Sachs opinions
The chief investment officer of Investment Strategy Group of the Goldman Sachs Group, Sharmin Mossavar-Rahmani has mentioned the points of deficit of cryptocurrencies. According to his statement, “We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency: they are neither a medium of exchange, nor a unit of measurement, nor a store of value.”
Currently, Bitcoin has slipped below $8000 mark with the price revolving around $7853. The price of the crypto coin has been depreciated by -3.53%. Despite, the recent yet sudden upsurge in the valuation of Bitcoin which struck the note of $8500 it, however, failed to seize the attention and adoption of a wider mass. This has been suggested with the help of a Gallup and Well Fargo survey.
As per the survey, out of the total 96% respondents who have come across the term “Bitcoin” [BTC], only 2% own the digital currency. A bulk of 72% possess hardly any interest in purchasing this cryptocurrency.
In the survey Gallup’s senior editor, Lydia Saad has stated, “Bitcoin has yet to make significant inroads into any major subgroup of U.S. investors,” wrote Lydia Saad, senior editor at Gallup. “Just 3% of men, 1% of women, 3% of those aged 18 to 49 and 1% of those aged 50 and older report owning it.” Saad has furthermore stated, “While ownership is more common among wealthier investors, just 3% of those earning $90,000 or more report owning bitcoin, compared with less than 1% of lower-income investors.”
However, in other cases, 75% of respondents consider Bitcoin [BTC] extremely risky and 23% as quite a risky venture. This survey report forms a part of the second quarter report of Wells Fargo/Gallup Investor and Retirement Optimism Index. The participants involving 1921 investors of U.S. range from 18 years and beyond.
The survey was part of the second-quarter Wells Fargo/Gallup Investor and Retirement Optimism Index survey, which was completed by 1,921 U.S. investors aged 18 years or older and conducted between May 7-14. These survey results and the standpoint of Goldman Sachs suggests a bearish market scenario in the crypto space.
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