Bitcoin price nears new all time high: Is Goldman Sachs driving it up?
Institutional interest in Bitcoin continues to snowball with JP Morgan and Goldman Sachs both capitalising on client demand for crypto exposure
- Bitcoin price back above AU$70,000 as it approaches its previous all time high.
- Goldman Sachs enters the crypto market, reopening its previously closed trading desk.
- JP Morgan issues bonds against cryptocurrency linked stocks.
Bitcoin is trading at AU$72,535 at the time of writing, which is a 2.4% increase in the last 24 hours.
Its rise comes amid significant volatility in the market pushing the price of Bitcoin upwards. The spot price for Bitcoin rose 2.6% to AU$72,047 before crashing 4.9% to AU$68,952. Since then the BTC spot price has rebounded 7.5% to a daily high of AU$74,165.
Despite the positive uptick in the Bitcoin price, the market for altcoins is mixed. Ethereum is down 0.5% on the day although it remains 22% up on the week. Binance Coin is down 4% over 24 hours while maintaining 18% growth over the week.
Litecoin and Uniswap are both down on the day despite posting gains of 14.9% and 22.3% over the week, respectively. Sitting at 15th in terms of market capitalization, Dogecoin is down more than 4% on the day while up 12.4% on a weekly basis.
Goldman Sach’s re-establishes crypto trading desk
The image below shows the point at which Goldman Sachs entered the market for Bitcoin in 2017 just before a period in cryptocurrency markets known as the “crypto winter” which spanned right up until the recent bull run began in September of 2020.
Head of international markets crypto division from Goldman Sachs, Matt McDermott, said that the bull market Bitcoin is presently running is different this time around.
McDermott argued that institutional interest is the main factor this time around with a slew of major corporate names entering the market for digital assets. Alongside Goldman’s America’s largest bank JP Morgan is also opening a crypto trading desk.
As part of the crypto trading desk JP Morgan have submitted information on a bond issue against holdings in a basket of cryptocurrency-related stocks. The bond issue includes Microstrategy (NASDAQ:MSTR), Square Inc (NASDAQ:SQ), Paypal Holdings (PAYPAL:PYPL), Riot Blockchain (NASDAQ:RIOT) and chip maker Nvidia (NASDAQ:NVDA).
Disclosure: The author owns a range of cryptocurrencies at the time of writing