Goldman Sachs Asks Crypto Investors to Stay Cautious In 2018
There is no doubt that 2017 has proved to the best year for crypto markets and in turn for cryptocurrency enthusiasts and investors. Bitcoin along with the altcoins has given investors great returns over the year as virtual digital currencies have partially managed to enter into the mainstream financial transaction system.
Moreover, Bitcoin’s growing popularity has also forced many financial giants and professionals to participate in the crypto markets. However, with the latest surge in the cryptocurrency market valuations in the past two months, analysts have been increasingly warning for the risks involved with the speculation of a huge bubble in the crypto markets.
Goldman Sachs economist - Jan Hatzius has said that the financial imbalances in the credit markets and cryptocurrencies can be a sign of bit worry in 2018.
In the latest report named “10 questions for 2018”, Hazitus said: “Asset valuations in some areas -- especially credit -- have risen to high levels by historical standards. While we have not seen the type of large credit expansions that would be most worrisome for Fed officials concerned about financial imbalances, there are now some signs of speculative behavior in financial markets, e.g. the cryptocurrency boom.”
However, as per one report, Goldman Sachs is also planning to launch a cryptocurrency trading desk by April 2018. The report said, “The move positions Goldman Sachs to become the first large Wall Street firm to make markets in cryptocurrencies”. While commenting on this, one Goldman spokesperson Michael DuVally said: “In response to client interest in digital currencies, we are exploring how best to serve them.”
In addition to Goldman, top bosses from many other global banking and financial firms have time and again denounced the idea of cryptocurrency calling it to be largely a speculative asset.
Moreover, recently, after all the rally there was a significant correction seen in the cryptocurrency market wherein the price of Bitcoin dropped by more than 40% before recovering again. Having reached its all-time high of $20,000, Bitcoin is currently trading at $13,628 as per our data. Analysts and investors currently are having a careful watch to the market and many are waiting for several Bitcoin-related investment products to finally come into existence.
Bitcoin products are expected to bring some legitimacy and stability to the market thereby reducing the extreme volatility in its prices. Things will get clear further as the year unfolds in the coming time.