For the longest time, traditional financial players have ignored Bitcoin. Goldman Sachs has always been one of the largest proponents of cryptocurrency in general. Bitcoin has been called “fake”, a “fad” and a “bubble” multiple times. Interestingly enough, Goldman is now effectively covering the Bitcoin price momentum. This change was forced upon them due to “overwhelming demand”. An interesting development, to say the least.
A lot of people were surprised to see Goldman suddenly cover Bitcoin. A few months ago, such a thing would have been unthinkable, for obvious reasons. The financial firm has no love lost for cryptocurrency whatsoever. In fact, they shrugged off Bitcoin as a “bubble” several times in the past. Seeing them focus on the Bitcoin momentum right now is quite interesting. Apparently, a lot of their clients have been asking about information on cryptocurrency.
Goldman Has a Bearish Outlook on Bitcoin Right Now
A new report was released by Goldman yesterday afternoon. In this report, Goldman’s chief technician Sheba Jafari touched upon the concept of Bitcoin. He also mentioned how people need to be wary of the top ahead of US$3,134. Although this seems like a negative price analysis, the prediction is not that far off by any means. No one is surprised to see Goldman being bearish on Bitcoin right now. It is obvious this coverage is done with a negative mindset in place, even though it holds up so far.
It is evident the Bitcoin price took a big bump last night. However, this has nothing to do with this report by any means. Coinbase suffered a multi-hour outage, which caused a lot of market panic. Both Bitcoin and Ethereum saw their fiat values, crash during this period. The market is only now starting to show signs of recovery. Exchange outages have been problematic for cryptocurrency for many years now. It doesn’t appear these issues will be alleviated anytime soon.
It will be quite interesting to see if Goldman will post a similar report on Ethereum. That seems highly unlikely at this point, though. Moreover, a lot of Bitcoin enthusiasts are quite bearish on Ethereum. If a report were to surface which does not share these opinions, all hell could break loose. This is quite an interesting decision by Goldman, though, as they set a rather surprising precedent.