Goldman Sachs Admits They Were Wrong About Bitcoin

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Goldman Sachs Admits They Were Wrong About Bitcoin
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America’s global leading investment banking, securities, and investments management giant Goldman Sachs yesterday announced that it will start offering Bitcoin and other digital assets investments to its private wealth management clients in Q2 2021.

Speaking during an interview with CNBC’s Squawk Box, Goldman Sachs’ CEO David Solomon said that bitcoin is a digital asset that is more like gold than a payments network and its valuation will keep on appreciating.

“I do think bitcoin is on an inevitable path to have the same market cap then a higher market cap as gold. It’s just how fast adoption happens. Adoption happening is happening faster than I had predicted.”

Goldman Sachs has made history with the announcement and is probably marking its first serious investment in the crypto market.  The move will expose Bitcoin and other digital assets to its over 3 million clients and cement Bitcoin’s status as a store of value.

Goldman Sachs: No longer Short on BTC

Solomon further added that since Bitcoin’s adoption is moving at a faster rate than the company anticipated, its appreciation rate will accelerate, and now is as good a time as any to get on board.

“It’s shocking to me how fast people are moving into the system, and how short people are. Once you decide it’s an asset class, if you’re not long, you’re short.”

Goldman Sachs usually targets funds with portfolios of at least $25 million under management and is now advising its clients to allocate 2-4% or 1-2% into BTC and other digital assets.

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Interestingly, Goldman Sachs’ decision comes barely a year after the firm declared BTC as an invalid asset class in a client’s brief and advised its customers to stay away from Bitcoin. In May 2020, Goldman Sachs said:

“We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients.”

Speaking about the development, CNBC’s journalists said that while big businesses like Goldman Sachs have been resistant to Bitcoin due to its high volatility, client demand has forced many to reconsider their stances on the digital assets investment class.

Companies like Goldman Sachs and VISA, therefore, have to respond to client demands or risk such clients looking for facilitation elsewhere.

BTC Zeros In On $60,000

Meanwhile, Bitcoin seems to be responding to the growing number of positive news from investments and developments in the crypto market.

Bitcoin On Track To Outpace Gold’s Market Value, Mike Novogratz Says
BTCUSD Chart By TradingView

The top coin is trading a little above $59,000 at the time of writing, for the first time since March 21. Crypto analyst and trader Michael had this to say about its price action:

“Basically, nothing to worry about for #Bitcoin. Acting sideways here in which a bounce form. Acting sideways here in which a bounce from the $56,500 region happened. As long as that holds, further sideways action and potential new ATH’s are on the table.”