Goldman Sachs Analyst Thinks Bitcoin is at a key Turning Point

By August 10, 2017Bitcoin Business
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Goldman Sachs Analyst Thinks Bitcoin is at a key Turning Point

Many cryptocurrency users are wondering where the fresh money is coming from. The overall market cap has grown quite a bit over the past few weeks. Money isn’t rearranging itself by any means, though, as more funds is pouring in. According to Goldman Sachs, the money coming in is “real money” and not just dumb funds related to cryptocurrency ICOs. More money will continue to flow in, by the look of things.

It is always good to see more money pour into cryptocurrency all of a sudden. This industry has seen some major changes in recent months. Right now, the total market cap is well above US$120bn, compared to US$40bn earlier this year. Money has been pouring into Bitcoin, Ethereum, ICOs, and other currencies. It is unclear where the money is coming from, though. Goldman Sachs chief technician Sehba Jafari feels this is only the beginning of what many come. More money will be put into cryptocurrency for quite some time, in her opinion.

Goldman Sachs Analyst on the Fence About Bitcoin

In technical terms, Jafari states Bitcoin is now in wave IV of its sequence Although it seems the upward potential is here right now, things could go down as quickly as well. A lower-bound movement could push prices down to US$1,856. An uptrend would see Bitcoin hover around US$3,000 for some time now. Right now, one BTC is valued at US$3,350 and seems to be holding its own with relative ease so far. Regardless of which prediction comes true, there will be a next major breakout which could hit nearly US4,000.

All things considered, Bitcoin is in a good position for the time being. It is evident there is less of a concern regarding the legitimacy of cryptocurrency these days. Instead, the hype is in full effect, Bitcoin will keep making a lot of upward moves, according to the Goldman Sachs analyst. It is the world’s leading cryptocurrency and that situation will not change anytime soon. It will be interesting to see how high the BTC market cap can go, though. Reaching US$60bn is the next logical step, but it may take a while until this happens.

The bigger question is how this will affect cryptocurrency ICOs. These projects still raise a lot more questions than they provide answers. Moreover, the SEC is still scrutinizing this concept more than ever before. There is a lot of dumb money in ICOs and the token prices are declining in most cases. These investments will pay off in a year or two from now, assuming the developers will do their part of the job. Some projects still have a potential to go up ten times in value or more. An interesting future lies ahead for Bitcoin and cryptocurrency, that much is evident.

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.

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