Goldman Sachs global head of commodities research sees the bitcoin market maturing. “The key to creating some sort of stability in the marketplace is increasing the participation of institutional investors,” he explained. Meanwhile, the cryptocurrency’s price skyrocketed Thursday, regaining much of its losses from the start of the week.
Goldman Sachs sees a maturing Bitcoin market
Jeff Currie, global head of commodities research at Goldman Sachs, told CNBC this week that the bitcoin market is maturing. Noting that it is “very difficult to predict the price of bitcoin” due to the level of volatility and uncertainty in the market, Goldman Sachs’ chief of commodities research noted:
I think the market is starting to mature. I think in any emerging market you get that volatility and the risks that come with it.
Bitcoin’s price has just bounced back to the $ 40K level after a Sunday night dive that saw billions of its market cap off. It climbed from a low of $ 36,811 to a high of $ 40,015 on Thursday, gaining around 8.7%. At the moment of writing, BTC trades at $ 39,583 and its market cap has surpassed $ 736 billion.
Currie further opined:
The key to creating any kind of stability in the market is to see an increase in the participation of institutional investors and at the moment they are small.
Currie added that “institutional money” represents only “about 1%” of bitcoin’s market cap. Meanwhile, Bitcointreasuries.org, the site of well-known companies that hold bitcoin, shows a total of 1,171,889 BTC are held by public companies and investment funds. This equates to over $ 46 billion or about 6% of bitcoin’s total market cap.
Nevertheless, the number of institutional investors with bitcoin in their portfolios is on the rise. Several reports suggest a growing institutional demand for it BTC, such as a survey by Fidelity, who found that nearly 80% of the 800 institutional investors surveyed find crypto assets attractive. Recent institutional buyers of bitcoins include Microstrategy, Ruffer, Airlift, and Mass mutual.
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