Goldman Sachs is an esteemed name in the world of investment, money, and research. The investment bank has branches all across the country. It presents perspectives, opinions, and research based analysis on many financial and economic concepts.
Volatility of Bitcoin
Recently, Goldman Sachs has targeted Bitcoin. Bitcoin, no doubt, is a hot topic. The entire blockchain technology and its applications are quite lucrative and in demand. Bitcoin is even gaining back its power, after observing a six-month low dip.
This volatility is actually the concern raised by the research team of Goldman Sachs. The forex head of the firm stated that Bitcoin has now joined the mainstream – the macro market, and this will follow certain consequences. Earlier Bitcoin and blockchain technology were more individual-oriented with retailers jumping in. Now, bitcoin is moving towards a more institutionalized setting. This makes bitcoin more approachable and connected to the market.
Role of interest rates in bitcoin
The mainstream trading of buying does not mean that the prices of bitcoin will fall in the future but it does mean that it is more vulnerable to the Feds policy change. Feds are working and, soon, will tell about the proposed interest rate hikes. This will impact the prices of bitcoin as well. This is because Bitcoin is now more involved in macro functions.
Cryptocurrencies are already very risky and volatile. There are no regulations of the market, and it is still growing. Many countries are changing this, and this macro movement is likely to impact Bitcoin. So, the coming times for the bitcoin market might be highly volatile. With the interest rates coming in, stay prepared for many fluctuations in the price of the currency.
