The firm faced significant criticism after the financial crisis for its profitable trading of so-called synthetic derivatives tied to the subprime mortgage markets. Schmidt and Ms. Yared said the current options for holding Bitcoin for clients did not yet meet Wall Street standards. This entire process is known as mining. Buying the bitcoin dip during a bull market has long been a profitable strategy. The note claims BTC may be on the verge of another price explosion similar to the percent rise we saw earlier this year.
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Major investment bank Goldman Sachs has just told investors that they should use the current dip to their advantage and buy Bitcoin. Goldman Sachs has just made a bullish call on Bitcoin. I’m personally most surprised they cant be bothered to use a chart that includes weekend price action. This strangely-precise prediction, to the exact dollar, should cause us safhs pause. If it was not Goldman Sachs, one might even scoff at these numbers. However, the financial firm has saxhs charting Bitcoin for some time now, and its influence cannot be disputed.
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But Goldman Sachs, perhaps the most storied name in finance, is bucking the risks and moving ahead with plans to set up what appears to be the first Bitcoin trading operation at a Wall Street bank. In a step that is likely to lend legitimacy to virtual currencies — and create new concerns for Goldman — the bank is about to begin using its own money to trade with clients in a variety of contracts linked to the price of Bitcoin. While Goldman will not initially be buying and selling actual Bitcoins , a team at the bank is looking at going in that direction if it can get regulatory approval and figure out how to deal with the additional risks associated with holding the virtual currency. Rana Yared, one of the Goldman executives overseeing the creation of the trading operation, said the bank was cleareyed about what it was getting itself into. Yared said. Still, the suggestion that Goldman Sachs, among the most vaunted banks on Wall Street and a frequent target for criticism, would even consider trading Bitcoin would have been viewed as preposterous a few years ago, when Bitcoin was primarily known as a way to buy drugs online. Bitcoin was created in by an anonymous figure going by the name Satoshi Nakamoto, who talked about replacing Wall Street banks — not giving them a new revenue line.
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Published: August 12, UTC. The virtual currency trading, though, will be available only to big institutional investors. The note claims BTC may be on the verge of another price explosion similar to the percent rise we is goldman sachs buying bitcoin earlier this year. Goldman Sachs is ditching its proposed cryptocurrency trading deskciting yet more regulatory anxiety. Instead, Goldman Sachs execs concluded that despite the interest, a framework does not exist that makes trading cryptocurrency legally compliant in the eyes of the Securities Exchange Commission SEC. Reaching these levels could mean completing a v wave count from July. The advice is therefore aimed squarely at institutional investors. Jamie Dimon, the chief executive of JPMorgan Chase, famously called it a fraud, and many other bank chief executives have said Bitcoin is nothing more than a speculative bubble. Source: Shutterstock. Email ben benjamin-brown. Ben is a journalist with a decade of experience covering financial markets.
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