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#1 17-08-2020 17:34:03

johnedward
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From: Paris - France
Registered: 21-12-2009
Posts: 3050
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Goldman Sachs says interest in cryptocurrencies is again on the rise

Goldman Sachs says interest in cryptocurrencies is again on the rise


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This year, the crypto market has been one of the most dynamic. In 2020, the market capitalisation of all digital assets has increased by over 79%. For example, in 2020 the value of Bitcoin soared by over 64%.

According to Matt Dermott of Goldman Sachs, the market rebound has led to the renewed interest of financial institutions in cryptos.

Interest in cryptos is on the rise

In a recent interview with NBC, Dermott, a former director of operations at Goldman Sachs, revealed his thoughts on the crypto market.

Regarding the uses of blockchains and related technologies over the coming years, he says:

In the next few years, we might see a financial system in which all assets and liabilities will be native to a blockchain, with all transactions occurring natively within a chain. Therefore, what is being done today in the physical world will simply be done digitally creating huge efficiencies. For example we will have debt issuance, securitisation, loan origination; basically there will be a whole ecosystem of markets."

On what's going on right now, Dermott says his data points to a "renewed interest in cryptos" from "some big institutional investors."

If they want to invest in Bitcoins, they can buy this and other cryptocurrencies by credit card, wire transfer, and even using electronic wallet services.

Many industry experts agree

Dermott is not the only person to have noticed this increase in interest in Bitcoins and other cryptos among institutions.

Bloomberg's Michael Glone released his latest report on his outlook for the industry a few weeks ago. Bloomberg's senior analyst noted that with the build-up of large amounts of cryptos and the rise of BTC futures, it's clear that institutional adoption is coming:

"The constant increase in interest in Bitcoin futures contracts traded at the CME represents, in our view, an accelerated maturation and propensity for prices to rise. Whether in the form of high or low positions. On the downside, futures are a key part of the current cryptocurrency industry that is slowly earning market and investor acceptance."

Interest from retail traders has also increased.

When Bitcoins rose recently, the asset was briefly trending on Chinese social media platforms like Weibo, according to some reports shared on social networks. At the same time, the search term "Bitcoin" started trending on Twitter in a few major economies.

This heightened interest is increasingly becoming evident in Google trends search data.

According to this data, interest in the term "cryptocurrencies" in Google is starting to increase, it has just passed its peak of the previous year and is heading to levels not seen since early 2018.

Smaller traders are entering the crypto market as larger players are increasingly losing their market dominance

The makeup of the Bitcoin trading base is changing rapidly, and smaller traders increasingly dominate the total Bitcoin supply in circulation.

This is happening as major player dominance in Bitcoins is tumbling, indicating that the market is currently seeing an influx of smaller traders.

This shift comes as more traders begin to turn to the Bitcoin due to its "hard asset" status, which can lead to increased accumulation among traders.

One group in particular that could be behind this trend is that of younger traders. A recent analysis by the JP Morgan brokerage firm shows that this group widely views Bitcoins as a store of value - like gold - and an alternative to the USD "safe haven".

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