More institutional investors would fix crypto market volatility – Goldman Sachs
- Goldman Sachs executive believes an increase in institutional investors would stabilize the cryptocurrency market.
- He cites low numbers of institutional investors as a deterrent to Bitcoin stability.
- The cryptocurrency market still has a long way to go in terms of beating uncertainties.
Jeff Curie, the global head of commodities research, has stated that he believes that more institutional investors would aid the cryptocurrency market stability. He made the statement on Tuesday after appearing on CNBC’s show, The Coin Rush. The executive also buttressed his point. He added that the cryptocurrency market, though it’s becoming more mature, still had a long way to go.
Institutional investors in the cryptocurrency market
According to the Goldman Sachs executive, only about 1% of institutional money has been put in Bitcoin. Currently, this figure translates to about $700 billion. Jeff Curie also described the digital asset as a defensive asset much similar to Gold. Gold’s market is currently valued at about $3 trillion, while the global cryptocurrency market value ranges to a peak of $1 trillion.
According to Jeff Curie, an increase to about $2 trillion would provide the much-needed strength in value to independent cryptocurrencies. This increase in market value might provide long-term equilibrium. He also added that the movement of money in and out of Bitcoin creates volatility. With these uncertainties’ peculiar to volatility, Jeff Curie concluded that forecasting would be much difficult.
Institutional investors and key players in the cryptocurrency market
Bitcoin’s green run over the past few weeks has attracted more investors to it. Reports are indicating that Coinbase contacted Goldman Sachs for its upcoming IPO. The move is predicted to garner broader mainstream adoption for cryptocurrencies. Other notable investments in the cryptocurrency market include those by companies like Grayscale, Square, MicroStrategy, PayPal.
