{"id":6388,"date":"2022-01-30T07:38:24","date_gmt":"2022-01-30T07:38:24","guid":{"rendered":"http:\/\/egrowonline.com\/?p=6388"},"modified":"2022-01-30T07:38:24","modified_gmt":"2022-01-30T07:38:24","slug":"goldman-sachs-suddenly-issued-a-surprise-crypto-price-warning-after-huge-bitcoin-ethereum-bnb-solana-cardano-and-xrp-crash","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=6388","title":{"rendered":"Goldman Sachs Suddenly Issued A Surprise Crypto Price Warning After Huge Bitcoin, Ethereum, BNB, Solana, Cardano And XRP Crash"},"content":{"rendered":"


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Bitcoin and cryptocurrency prices have somewhat stabilized this week after a steep sell-off that wiped over $1 trillion from the combined crypto market, with ethereum, BNB, solana, cardano and XRP tanking<\/a> and sparking fears of a new crypto winter<\/a>. <\/p>\n

Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover hot new NFT and crypto blockbusters poised for 1,000% gains<\/em><\/a><\/p>\n

The bitcoin price dropped from a peak of almost $70,000 per bitcoin late last year to around $30,000 this month before rebounding slightly\u2014even as some bullish investors bet the bitcoin price will eventually hit staggering highs<\/a>.<\/p>\n

Now, Wall Street giant Goldman Sachs has warned increased crypto adoption may not translate into higher prices and could even damage the narrative that bitcoin, ethereum and other coins diversify a portfolio.<\/p>\n

Sign up now for the free\u00a0CryptoCodex<\/em><\/strong><\/a>\u2014A daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every weekday<\/strong><\/p>\n

MORE FROM FORBES<\/span>Crypto Crash: Market Now Braced For A Game-Changing White House Executive Order As Price Of Bitcoin And Ethereum Collapse<\/span>By Billy Bambrough<\/span><\/small><\/span><\/span><\/a> <\/p>\n

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Goldman Sachs has called crypto adoption “a double-edged sword,” and warned the price of bitcoin, … [+]<\/span> ethereum, solana, BNB, cardano and XRP may not climb as a result. <\/span><\/p>\n

SOPA Images\/LightRocket via Getty Images<\/small>
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“Mainstream adoption can be a double-edged sword,” Goldman Sachs strategists wrote this week in a note first reported by Bloomberg<\/em><\/a>. “While it can raise valuations, it will also likely raise correlations with other financial market variables, reducing the diversification benefit of holding the asset class.”<\/p>\n

Bitcoin and cryptocurrency adoption has soared over the last year, rising along with the price of most major cryptocurrencies, including ethereum, BNB, solana, cardano and XRP\u2014with some recording eye-watering triple-digit percentage increases. <\/p>\n

Wall Street legends<\/a>, financial giants, high-profile companies<\/a> and even one country have bought bitcoin<\/a>, with the expectation the bitcoin price will continue to climb<\/a>. <\/p>\n

Meanwhile, the use of crypto technology to recreate traditional financial services, known as decentralized finance (DeFi), and collectible non-fungible tokens (NFTs) that are both largely built on ethereum’s blockchain have soared in popularity as investors pour cash into them. <\/p>\n

However, Goldman rival JPMorgan has warned ethereum’s high transaction fees and network congestion risk handing NFT market share to rival blockchain solana\u2014something that could be a “problem for ethereum’s valuation.”<\/a> Bank of America has said solana could become the “Visa of the digital asset ecosystem.”<\/a><\/p>\n

Elsewhere, the world’s biggest technology companies, led by Facebook’s newly branded parent company Meta and now including Apple and Microsoft, are forging into the virtual reality-based metaverse\u2014with some predicting bitcoin, crypto, DeFi and NFTs could have a part to play<\/a>.<\/p>\n

CryptoCodex<\/em><\/strong><\/a>\u2014A free, daily newsletter for the crypto-curious<\/strong><\/p>\n

MORE FROM FORBES<\/span>Crypto Price Prediction: ‘Valuation Models’ Reveal Bitcoin 2022 Target<\/span>By Billy Bambrough<\/span><\/small><\/span><\/span><\/a> <\/p>\n

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The bitcoin price has swung wildly over the last year with its price hitting a fresh all-time high … [+]<\/span> far above its previous peak and bringing increased awareness to bitcoin and crypto.<\/span><\/p>\n

Coinbase<\/small>
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The metaverse could provide a “secular tailwind” for some crypto-assets but they won’t be “immune to macroeconomic forces” such as the Federal Reserve raising interest rates and shrinking its huge balance sheet, Goldman analysts warned.<\/p>\n

\u201cOver time, further development of blockchain technology, including applications in the metaverse, may provide a secular tailwind to valuations for certain digital assets,\u201d the strategists wrote. “But these assets will not be immune to macroeconomic forces, including central bank monetary tightening.”<\/p>\n

The latest crypto crash, reducing the combined value of the crypto market from around $3 trillion to just over $1.5 trillion, was sparked by fears the Fed could soon hike rates. Global stock markets have also sunk as investors face up to the reality of a return to pre-epidemic monetary policy.<\/p>\n

Many long-term bitcoin and crypto investors aren’t worried, however, with Cathie Wood’s Ark Invest this month predicting the bitcoin price could exceed $1 million by 2030\u2014with ethereum’s market capitalization potentially topping $20 trillion<\/a>.<\/p>\n<\/div>\n


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Bitcoin and cryptocurrency prices have somewhat stabilized this week after a steep sell-off that wiped over $1 trillion from the combined crypto market, with ethereum, BNB, solana, cardano and XRP tanking and sparking fears of a new crypto winter. Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover hot new NFT and crypto blockbusters […]<\/p>\n","protected":false},"author":1,"featured_media":6389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[44],"tags":[50,564,266,1000,62,158,3158,640,495,195,3159,84,1103,730,425,58],"class_list":["post-6388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ada","tag-bitcoin","tag-bnb","tag-cardano","tag-crash","tag-crypto","tag-ethereum","tag-goldman","tag-huge","tag-issued","tag-price","tag-sachs","tag-solana","tag-suddenly","tag-surprise","tag-warning","tag-xrp"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/01\/1643528301_0x0.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/6388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6388"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/6388\/revisions"}],"predecessor-version":[{"id":6390,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/6388\/revisions\/6390"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/6389"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6388"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}