[2017-10-03] Goldman Sachs' Bitcoin Desk Would Attract Mega Funds

[Eric Cartman]

Prayers answered or simply too good to miss? The Wall Street giant Goldman Sachs is reportedly considering a brand new operation which would be dedicated to Bitcoin trading. Well, if you are working for JP Morgan, no need to worry because if your boss fires you, another Wall Street giant would be more than happy to take you on board.

Bitcoin is the reality and it doesn’t matter how bad the news flow is, traders are still very much interested. There is no doubt that Bitcoin is highly volatile and one should take extra care when trading this derivative. After China banned Bitcoin exchanges, the price of Bitcoin fell below $3,000 and I did mention in my last article that this much drop in price opens the room for opportunity.

The Bitcoin price rallied all the way back above $4,000 and it is more than likely that we could test the recent all-time high again.

Remember, this is despite the fact that we had some more negative news from South Korea which banned Bitcoin ICO. The price action clearly makes one thing clear so far: selling the digital currency is not the best strategy but buying the dip might just be.

One could argue that traders may be reading too much into Goldman opening Bitcoin desk. But the reality is that if Goldman opens a Bitcoin desk, it would not only legitimize the cryptocurrency but it would also attract mega funds. After all, the bank is known for having a deep pocket.

Moreover, Goldman’s core business is trading while JP Morgan makes substantial amounts of money by lending. The Wall Street powerhouse Goldman Sachs is struggling to maintain its revenue and the strongest revenue arm- fixed income dropped nearly 40% during the second quarter. It perfectly makes sense to add another business which may not only help their trading business but down the line, it could also boost its lending operation.

After all, Bitcoin is the biggest threat to the mighty dollar whose purchasing power is diminishing. And Goldman is no stranger to adding exotic derivatives in their trading especially if you consider that the bank was selling mortgage-backed credit swaps.

https://www.forbes.com/sites/bnymellonwealthmanagement/2017/09/26/top-market-events-over-the-last-100-years-infographic/#e3baf6a1f668

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[1Referee]

If you would tell me years ago that a major, and at the same time notorious US financial institution would be ultra bullish on Bitcoin, I would have laughed it off as if it was nonsense. But things start to look very promising right now with Goldman Sachs preparing to take things to the next level. If people weren't bullish already, and thus needed a push to become one, then this would definitely be the needed push. This potentially will allow billions of capital to flow into this eco system, and thus steer this market towards new highs that go far beyond what we think is possible right now. Add the fact that there aren't many coins anymore to mint in the forthcoming years, and you'll understand that we'll blast past the moon without much problems.

[veleten]

so,expect yet another rant from Dimon regarding this
I imagine he will be very infuriated this time,seeing his direct competitors declare support for the things he claims to be
borderline criminal and scamlike
and yeah Goldman Sachs are not stupid,they see the perspective,although they  did predict a huge dump in price,creating
additional pressure on the market,remember,the 3000$ low a couple of weeks ago?
they said the price could fall to 2000$ mark and lower,buying like mad meanwhile,apparently
in any case,this is great news for bitcoin,more and more top players declare support for bitcoin
who is next? Google? Amazon? (not)

[BitHodler]

Goldman Sachs has definitely something to do with the recent uptrend, and they are looking to extend their reach by possibly launching their own platform. I say possibly because I want to see it become reality before I believe it.

Talking about doing things is easy, but when it comes to executing ideas/plans, much more is needed to make it happen. Great thing however is that Goldman Sachs is a wealthy and powerful wall street bank.

Everyone can see that this industry has room for much more growth in the coming years, and banks are looking to benefit from this constantly growing demand, and thus come up with initiatives to do so.

This might trigger a chain effect of banks looking to offer similar services to outperform their close competitors ~ great thing to look forward to because institutions have the power to push this industry to the next level.