Wide adoption of Bitcoin (BTC) and cryptocurrencies It may not necessarily drive prices higher in dollars, according to Goldman Sachs.
Bloomberg reportOn Thursday said The international banking giant claims that adoption of mainstream crypto assets will increase ties with other major asset classes, a view contrary to many Bitcoin devotees.
“While it may add value, it tends to increase its correlation with other financial market variables, reducing the benefit of diversification of asset holdings.”
Authors Zach Pandl and Isabella Rosenberg further explain that broad adoption is a “two-edged sword.”
On the other hand, if Bitcoin or crypto has more correlation with other assets. The scope of profits will also be reduced.
The comments came as the crypto market became more correlated with the equity market. Especially this month, however, Goldman Sachs previously argued that the BTC/USD price could still hit $100,000, stealing market share from gold and attracting more traditional investors.
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