Bitcoin has gained massive adoption over the past year, with traditional banks and institutional investors entering the market in droves. However, there is still an ongoing debate about Bitcoin’s position as an asset class. This has caused a difference in opinion amongst Goldman Sachs analysts.
Goldman Sachs analysts can’t decide on Bitcoin’s position
Goldman Sachs has been changing its views regarding Bitcoin for a while now. Some of the bank analysts don’t see it as an investable asset class, while the others do. This latest development comes despite the bank expanding its presence in the cryptocurrency market.
Wall Street investment bank Goldman Sachs published a report titled “Digital Assets: Beauty Is Not in the Eye of the Beholder.” In the report, the bank analysts said the leading cryptocurrency is not a long-term store of value or an investable asset class. The views from this report contradict Goldman Sachs’ May 21 report titled “Crypto: A New Asset Class?” In this report, Matthew McDermot, global head of digital assets at Goldman Sachs, classified Bitcoin as an investable asset class after its performance over the years.
The investment bank has changed its decisions on Bitcoin numerous times over the past few years. Last year, the Bitcoin published a presentation detailing reasons why it thinks Bitcoin is not an investable asset class.
In this latest report, the Goldman Sachs analysts said they wanted to play it safe regarding Bitcoin. They didn’t want to attach any positive or negative sentiment to the cryptocurrency. The report said, “We have refrained from repeating the positive and negative hype that surrounds this ecosystem because we do not want clients to be seesawed, even swayed by a cacophony of assertions, many of them unsubstantiated.”
Bitcoin’s price has historically gone up
Despite the argument regarding Bitcoin and its status as an asset class, its price has gone up since it was first launched in 2009. The surge in Bitcoin’s value comes despite intermittent bear markets such as the one experienced in 2018 and 2019.
Story continuesBTC/USD chart. Source: FXEMPIRE
At the time of this report, Bitcoin’s (BTC) price is down by 3.6% over the past 24 hours, and it is trading below the $40k mark again. Bitcoin has struggled to surpass the $40k mark in recent weeks, and it is still nearly 40% down from its all-time high price of $65,000.
This article was originally posted on FX Empire
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