The Bitcoin market is going to remain volatile in spite of the fact that an investment giant like Goldman Sachs has endorsed the cryptocurrency.
The start was rough for Bitcoin this year. The first quarter was quite upsetting as the price went down to 48 percent. According to Goldman Sachs CEO Arthur Hayes, the market is going to remain volatile because more people are going to enter the cryptocurrency market. Hayes has said that people have become complacent because the market has been going up quite regularly.
According to Hayes, Goldman Sachs loves the volatility in the market.
“We make more money when the market goes down,” Hayes told Bloomberg.
We love this volatility.
Hayes brings in a valid point because Bitcoin became volatile by the end of last year. It happened soon after Chicago Mercantile Exchange started Bitcoin futures trading. According to the Federal Reserve Bank of San Francisco, when future markets are introduced, it is usual for the trading to take a volatile turn. However, it will be interesting to see how much volatility traders are willing to digest, as more traders will join in to make things more complicated.
Goldman Sachs Enters Crypto Market
Meanwhile, Goldman Sachs has become the first regulated financial company to start trading Bitcoin futures. It is going to conduct the same through one of its desks in New York. In the past, it received various relevant inquiries from various institutions that had been backed by Bitcoin millionaires. That is one of the reasons it decided to go the cryptocurrency route.
According to Forbes, the legitimacy of cryptocurrencies is now even more because a financial giant like Goldman Sachs is going to get involved in it. Nevertheless, the company is not going to have direct transactions with Bitcoin at the moment. Instead, it is going to use its own funds for Bitcoin futures trading for its clients.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]