Geoffrey Curry, head of commodities research at Goldman Sachs, believes that the amount of institutional money in BTC must grow for the asset to develop.
According to Jeffrey Currie, increasing institutional investor participation is the “key” to stabilizing nascent cryptocurrency markets. Speaking on CNBC’s The Coin Rush, Curry said the cryptocurrency market is “getting more mature” but has yet to move forward.
“The participation of institutional investors is still small. Currently, about $ 700 billion has been invested in bitcoin, of which about 1% is institutional money, ”said Curry.
According to Curry, Bitcoin is a defensive asset similar to gold. He said that some of the money invested in the gold market could be transferred to cryptocurrency.
“Now the total capitalization of the cryptocurrency market is about $ 1 trillion. Suppose it rises to $ 2 trillion. Let’s apply simple math – between how many coins on the market this amount is divided, and we get the fair value. ”
However, the constant inflow and outflow of money in BTC creates a lot of volatility and uncertainty that make forecasting difficult, Curry added.
In December, Goldman Sachs analysts said bitcoin had little impact on the gold market. Last spring, representatives of the bank held a video conference with investors at which they argued that bitcoin and other cryptocurrencies are not an asset class.