Crypto News

The Effects of Goldman Sachs’ Move on Cryptocurrencies

The Effects of Goldman Sachs’ Move on Cryptocurrencies

The Effects of Goldman Sachs’ Move on Cryptocurrencies

Bitcoin and other altcoins will probably notice a huge change in the crypto space as Goldman Sachs has started bitcoin futures trading. It has become the first regulated financial institution to do so. The move is seen as a boost for investors and bitcoin trading, but its impact on Bitcoins value is still unclear.

The American multinational investment bank has paved its way through the volatile crypto space. It would be the first regulated financial entity to allow traders to deal in bitcoin futures creating a new platform for bitcoin to perform and grow. The move is bound to attract new and old institutional investors and increase the trade volume and prices of the calculable future. Currently, bitcoin is being traded around the $8,000 mark, but prices have taken a one percent leap in the last few hours. Bitcoin has risen amidst a shallow drop in the prices of major digital currencies throughout the week.

The interested traders will be able to buy and sell bitcoin futures through Goldman Sachs’ New York desk.  Recently, the bank saw a significant growth in the number of foundation and endowment inquiries and hedge funds which were funded by bitcoin millionaires. However, the bank will not be dealing into bitcoin itself but rather assist institutional traders. Apart from that, it will be using its own funds to deal in bitcoin future contracts on behalf of its clients.

The institution will also be trading in non-deliverable forward futures where traders will be provided wit regulated currency it was mentioned earlier. According to market experts, the new venture of such a reputed bank will instill confidence among bitcoin traders and attract people who were not entering bitcoin space due to considerable risk.

Mati Greenspan, a senior analyst at eToro, predicted that Wall Street is quite interested in the crypto space and new waves of investments are about to hit the market. Moreover, institutional investors are eager to invest in bitcoin right now as they failed to gain profits through the massive price hike of December 2017.

Greenspan added: “So they were trying hard to catch that Bull Run, and it seems they did miss the party. November was a very interesting time […] I imagine that the clients in the Wall Street banks also wanted to get in on that party.”

After the hopeless first quarter of 2018 bitcoin has enjoyed steady but slow growth in its value. The virtual coin faced hard times in the build-up to the US tax day, but new money was injected into the market as soon as the cloud of taxation evaporated. Many analyses have predicted that bitcoin will surpass the value of $20,000 by the end of the year.

It should be noted that bitcoin US tax authorities have not received the expected amount of taxation from bitcoin holders. Investment in bitcoin futures might not please the government who have already been skeptical about virtual currencies. But, Goldman Sachs project is set to accelerate the inclusion of bitcoin in the traditional economy.

About the author

mm

Justin Danneman

Justin has built his career around digital marketing, online gaming and finance. He currently oversees all the content published on Bitcoin Chaser, in particular the news and analysis. To know more about Justin, follow him on Facebook.

Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *