Goldman Sachs’ global director of commodities research sees the bitcoin market maturing. “The key to creating some stability in the marketplace is getting more institutional investors involved,” he said. Meanwhile, the price of the cryptocurrency rose on Thursday, regaining much of the losses since the week began.
Goldman Sachs sees a mature bitcoin market
Jeff Currie, Global Head of Commodities Research at Goldman Sachs, told CNBC this week that the Bitcoin market is maturing. The head of commodities research at Goldman Sachs noted that because of the volatility and uncertainty in the market, it is “very difficult to predict the price of Bitcoin” and noted:
I think the market is starting to mature. I think every emerging market has this volatility and the risks that come with it.
Bitcoin price has just returned to the $ 40,000 level after plummeting Sunday night and losing billions of its market cap. It rose from a low of $ 36,811 to a high of $ 40,015 on Thursday, up 8.7%. At the time of writing BTC trades at $ 39,583 and its market cap has exceeded $ 736 billion.
The key to creating some stability in the market is that institutional investor participation is increasing and it is currently low.
Currie added that “institutional money” only makes up “about 1%” of Bitcoin’s market cap. Bitcointreasuries.org, the website that lists well-known companies that hold Bitcoin, shows that a total of 1,171,889 BTC are held by public companies and mutual funds. That equates to more than $ 46 billion, or roughly 6% of Bitcoin’s total market capitalization.
Still, the number of institutional investors with Bitcoin in their portfolios has increased. Several reports suggest a growing institutional demand for it BTCA survey by Fidelity found that nearly 80% of the 800 institutional investors surveyed found crypto assets appealing. Recent institutional buyers of bitcoins include Microstrategy, Ruffer, Skybridge, and Massmutual.
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