As Bitcoin booms and so many investors are rethinking the idea of cryptocurrency, Goldman Sachs has published a new report that claims to explain what is driving the market. According to the report, the biggest issue generating headlines and driving the market is “FOMO,” or “Fear of Missing Out”. This is when investors see their friends, family and coworkers making money in cryptocurrency and they decide they need to get in on the action.
The adoption of cryptocurrencies by institutional investors is pushing the price of Bitcoin to all-time highs. According to a recent report released by Goldman Sachs, the susceptibility of new investors to “fear of missing out” (FOMO) is the primary cause. The report, issued last month, suggests that “investors’ interest in cryptocurrencies has been building steadily since mid-2016 and is especially strong among highly educated people with a high risk tolerance.”
Goldman Sachs is one of the most influential banks in the world. So, when it says that cryptocurrencies like Bitcoin are a legitimate investment that will make you money, you sit up and take notice. The bank’s chief technician Sheba Jafari says that the current wave of institutional investors moving into the crypto space is all down to fear of missing out (FOMO). The Goldman Sachs report cautions that cryptocurrencies remain highly speculative investments, so if you do decide to take the plunge, just make sure you prepare yourself for plenty of ups and downs.. Read more about goldman sachs on bitcoin and let us know what you think. Investment bank Goldman Sachs says institutional investors and asset managers are being pushed into bitcoin by fear of missing out on profits (FOMO). Goldman now considers bitcoin a new asset class. However, institutional investors face a number of significant barriers to entering the cryptocurrency market.
Asset managers, institutions with FOMO about cryptocurrencies
Goldman Sachs said Monday that investors’ fear of missing out on potential gains from cryptocurrencies (FOMO) has driven cryptocurrency prices higher over the past year. Matthew McDermott, global head of digital assets at Goldman Sachs, said in a note to clients: There is no doubt that fear of missing out (FOMO) plays a role, given the rise in the price of bitcoin and other crypto assets and the number of players from all walks of life who have stepped into the space. Although liquidity in the cryptocurrency market has increased recently, the analyst says it is still difficult for institutions to access the market, which is still quite fragmented. He continued: If you’re an asset manager or manage a macro fund and your closest competitors are investing [in cryptocurrencies] and achieving significant returns, your investors are naturally going to wonder why you’re not investing [in this asset class]. McDermott went on to discuss key questions from Goldman clients about what is stopping them from increasing their stake in bitcoin or other cryptocurrencies. First, McDermott says, greater corporate involvement often depends on whether the board believes it makes sense given the nature of the company and its goals. The Goldman analyst pointed out that some mutual funds and asset managers are not allowed to invest a portion of their portfolios in cryptocurrencies. The second obstacle is this: Do clients have easy access to the market, sufficient liquidity to meet their needs and are they sufficiently familiar with the custody and security aspects of managing these assets? In addition, some clients are hesitant to do the right thing with cryptocurrencies and whether it makes sense for their investment strategies, portfolios or balance sheets, the analyst said. Nevertheless, he stressed: As evidenced by the increase in inflows, more and more organizations are beginning to take a relaxed approach to cryptocurrencies. What do you think of Goldman Sachs’ analysis? Let us know your comments in the section below.
Tags in this story
asset managers, barriers to entry, fomo bitcoin, bitcoin market, fomo cryptocurrency, cryptocurrency market, fear of exit, FOMO, goldman clients, goldman sachs, goldman sachs bitcoin, institutional investors Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.Even though the bitcoin price is still down by more than 30% from the December high of $19,000, the world’s most valuable cryptocurrency is attracting increased attention from institutional investors. This is according to a new report released by Goldman Sachs today, which says that bitcoin has been the best performing asset of 2018 so far among the 10 largest cryptocurrencies by market capitalization.. Read more about bitcoin fomo calculator and let us know what you think.
goldman sachs on bitcoingoldman sachs bitcoin forecastbitcoin pricebitcoin fomo calculatorbitcoin newsnext bitcoin surge,People also search for,Privacy settings,How Search works,goldman sachs on bitcoin,goldman sachs bitcoin forecast,bitcoin price,bitcoin fomo calculator,bitcoin news,next bitcoin surge,bitcoin price usd,goldman sachs coin