Goldman Sachs Declares Crypto as a New Asset Class

Institutional Investors

However, there was also one development that I felt did not receive the attention it deserved, and that is Goldman Sachs’ recognition of crypto as a new asset class. Now, banking firms like Goldman or JPMorgan have always had this love-hate relationship with crypto, where they are super skeptical one month, only to switch and be highly supportive of the industry the next one.

But, I see Goldman’s article titled “Crypto: A New Asset Class” as a potential point of no return, where the bank has now pledged its support to the industry. Of course, the speculations started immediately, going from what this means for crypto and/or Goldman, to whether or not this will mean more capital inflows.

Greater Adoption is Likely

I think that the move may have already had an impact on the industry, as it took place around the same time when the crypto prices started their recovery. Or, at least, when the drops finally stopped. Bitcoin has dropped quite a bit in May, but following the publication of this text, the price started to grow a bit. It hit a resistance pretty quickly, but it might just be that this decision by Goldman had enough of an impact to stop further losses.

Of course, there is no guarantee that BTC has found a bottom and that it will never again drop below $30k. I think there is a good chance that this will happen eventually, but there is also a chance that it won’t. The sector is traversing unexplored waters right now, as we never before had support from institutional investors. Now that we do, it will take us a while to see how Bitcoin and the rest of the industry behaves with these new backers.

Do you think that more money will be heading into crypto from institutions soon?

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