Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,165 trillion. Bitcoin is up by over 2% after a rollercoaster of a week. Ethereum decreased by almost 1% over the past seven days. XRP gained more than 15% in value this week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector decreased the total value of protocols…
Goldman Sachs Head Of Investment Strategy Says Bitcoin Is Not A Store Of Value Asset
While many consider Bitcoin (BTC) as a store of value, Sharmin Mossavar-Rahman, head of the investment strategy group at Goldman Sachs, has refuted that claim due to the asset’s high volatility nature.
Mossavar-Rahman commented today during a briefing on Goldman Sachs 2021 outlook, as published by Bloomberg.
She weighed in on several Bitcoin-related topics and compared BTC’s recent rally with GameStop Corp. shares.
According to Mossavar-Rahman, any asset with a “long-term volatility of 80%” should not be regarded as a medium of exchange because of its constant price fluctuations.
“Just because everybody piles into an idea and talks it up doesn’t mean it’s a store of value,” she said.
Her comments came barely a week after Tesla CEO Elon Musk changed his Twitter bio to Bitcoin, which caused the price of the world’s largest cryptocurrency to spike within the hour the update was made.
Although Mossavar-Rahman’s opinion may seem sentimental, bitcoin’s value, like other assets, has reacted positively to favorable events and vice versa.
Banks’ Execs Scrutinizing Bitcoin
Banks’ executives have continued to scrutinize BTC because of its disruptive nature in the financial space, with more traditional financial experts speaking against the cryptocurrency.
Last month, Gabriel Makhlouf, European Central Bank governing council member, warned bitcoin investors to be prepared to “lose all their money” should they continue with the investment.
In the same month, Christine Lagarde, ECB president, described Bitcoin as a highly speculative asset.
These comments come on the heel of Bitcoin surging up to a record above $41,000 earlier last month and later depreciated to $28,000. Since the remarkable performance, bitcoin has fluctuated between $32,000 and $37,000.
However, the jinx broke once again earlier today, and BTC surpassed the $37k resistance, trading above $38,000, before dropping to $37,000, at the hour leading to press time.
Blockchain Is Here To Stay
While Mossavar-Rahman is not a Bitcoin fan, she acknowledged the technology’s value powering the cryptocurrency, blockchain.
She said that the tech could be deployed to facilitate the adequate flow of global assets and become a part of its financial infrastructure.