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Goldman Sachs Predicts Bitcoin Could Reach $100K as BTC Continues to Take Gold’s Market Share as Store of Value

Goldman Sachs Predicts Bitcoin Could Reach 0K as BTC Continues to Take Gold’s Market Share as Store of ValueGoldman Sachs has predicted that the price of bitcoin could reach $100,000. The global investment bank believes that bitcoin will continue to take market share away from gold as cryptocurrency adoption grows. Goldman Sachs’ Bitcoin vs Gold Prediction Goldman Sachs analyst Zach Pandl, co-head of global foreign exchange strategy, outlined the future outlook for bitcoin […]

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

KKR leads $350M raise for crypto custody bank Anchorage Digital

The raise marks the first time investment giant KKR directly invests in a cryptocurrency firm.

Major cryptocurrency custody bank Anchorage Digital has closed a fresh funding round, bringing its valuation to over $3 billion.

Anchorage Digital announced on Wednesday that it had raised $350 million in a Series D funding round led by equity investment giant KKR.

According to the announcement, this is the first time for KKR to directly invest in equity in a company in the crypto industry. The company invested through its Next Generation Technology Growth Fund II, which is dedicated to developing equity investment in the technology space.

“As a pioneer in enabling institutional investors to access digital assets, Anchorage has built a best in class, institutional-grade digital asset platform that combines the best practices of both modern security and usability,” KKR senior leader of technology growth equity team Ben Pederson said.

The new raise also included a wide number of investors both in traditional finance and the cryptocurrency industry, including companies such as Goldman Sachs investment bank and Sam Bankman-Fried’s crypto firm, Alameda Research. Other investors include venture capital firm Andreessen Horowitz, BlackRock, Blockchain Capital, Delta Blockchain Fund, PayPal and Kraken.

The new funding will help Anchorage Digital further expand its infrastructure and product offerings as well as continue growing its headcount, which has already increased by 175% in 2021.

Related: Celsius expands funding round to $750M, tips $7B to $10B valuation in 2022

“This funding positions Anchorage Digital to meet the unprecedented institutional demand for this rapidly evolving market,” Anchorage Digital co-founder and president Diogo Mónica said.

Anchorage became the first crypto firm to receive a charter from the United States national bank regulator, the Office of the Comptroller of the Currency, in January 2021. The firm subsequently raised $80 million in a Series C round led by Singapore’s sovereign wealth fund GIC.

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Goldman Sachs: Gold Is Becoming Poor Man’s Crypto

Goldman Sachs: Gold Is Becoming Poor Man’s CryptoGoldman Sachs’ head of energy research says, “Just like we argue that silver is a poor man’s gold, gold is maybe becoming the poor man’s crypto.” He sees funds starting to flow from gold into bitcoin as inflation fears escalate, noting that “We’ve argued historically that crypto and gold do not have to cannibalize each […]

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Ethereum back in price discovery as ETH approaches $5K

The world’s second-largest cryptocurrency crossed the $4,700 mark following Bitcoin's rally.

Ethereum blockchain’s native asset, Ether (ETH), touched a new record high on Nov. 8, supported by a rally across the top cryptocurrencies ahead of a key United Stat inflation report this week.

ETH’s price rose by 3.30% in the past 24 hours to $4,770 for the first time in it history as Bitcoin (BTCreclaimed $66,000, demonstrating the strong positive correlation between the two digital assets.

Cryptocurrency correlation table (based on data collected in the last 24 hours). Source: Crypto Watch

Inflationary pressure returns

Wall Street economists anticipated the U.S. Consumer Price Index to rise to 5.8% in October ahead of the Bureau of Labor Statistics’ inflation report on Wednesday. That would log a step up from the 5.4% tempo recorded in September, the highest since 1990.

Additionally, consensus forecasts observed by Bloomberg suggested that the U.S. consumer prices rose 0.6% between September and October, up from 0.4% between August and September.

U.S. headline inflation. Source: Bloomberg, Bureau of Labor Statistics

The latest inflation figures came after the Federal Reserve’s policy meeting last week. The U.S. central bank decided to unwind its $120-billion-a-month asset-purchase program to tame the persistently rising consumer prices and bring them down to its intended 2% target. 

But the Fed officials stuck to their long-term view that inflation is “transitory” in nature, eventually deciding to keep their benchmark interest rates near zero. That kept Bitcoins overall bullish momentum intact, given its high returns in the period of ultra-low interest rates and massive bond-buying.

ETH price technicals

Ether’s technicals supported an upside outlook, with the price trending eying a run-up toward its prevailing ascending channel’s resistance trendline — near the $4,800–$5,000 area — as shown in the chart below.

ETH/USD daily price chart featuring its ascending channel setup. Source: TradingView

Additionally, the ongoing bull flag breakout setup also shifted Ether’s profit target to near $4,800.

Bernhard Rzymelka, global markets managing director at Goldman Sachs, anticipates Ether to have hit $8,000 by December 2021 if the token keeps tracking inflation expectations.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Ex-Wall Street execs lead new Bitcoin mining firm as US hash rate soars

PrimeBlock’s CEO was involved in the $98 billion direct listing for Coinbase that Goldman Sachs was leading.

Prime Blockchain (PrimeBlock), a new cryptocurrency mining company in the United States, is hiring its inaugural management team after starting to mine Bitcoin (BTC) in September.

PrimeBlock told Cointelegraph on Thursday that it appointed Goldman Sachs veteran Gaurav Budhrani as the company’s CEO.

Budhrani spent over 10 years at Goldman, with his latest position featuring crypto investment banking coverage, including the $98 billion direct listing for the Coinbase crypto exchange that Goldman was leading. Budhrani said on his LinkedIn profile that he completed over $300 billion of transactions across many crypto-related verticals, including “cryptocurrencies, semiconductors, next-gen computing technologies, and software.”

The firm has also hired Alan Konevsky, most recently interim CEO and chief legal officer at Overstock’s digital asset venture tZERO and former managing director at Goldman Sachs. Konevsky is joining PrimeBlock as its new chief legal officer. He previously held senior roles at companies like Mastercard and Sullivan & Cromwell.

The appointments come about a month after PrimeBlock rolled out its first crypto mining operations in Tennessee and North Carolina in September, Budhrani said. The majority of PrimeBlock’s operations are based in the Tennessee Valley Authority, a territory that includes parts of Alabama, Georgia, Kentucky, Mississippi, North Carolina and Virginia.

“Although PrimeBlock is a relatively new operation, it is already up and running, with growth outpacing its competition. PrimeBlock has already deployed in excess of 70 megawatt of installed capacity and approximately 1 exahash per second (EH/s) for self mining and 0.5 EH/s for hosting," Budhrani noted.

The company has over 10,300 Bitmain Antminer S19 Pro models on the balance sheet for Bitcoin mining, alongside 2,600 PandaMiners for Ether (ETH) mining. PrimeBlock has already deployed over 9,000 miners and expects to deploy the rest within the next two weeks, the CEO said.

Related: Genesis Digital Assets announces new data center in Texas

PrimeBlock’s news came after the United States took the lead in cryptocurrency mining in mid-October following sweeping cryptocurrency crackdowns by China. According to the Cambridge Bitcoin Electricity Consumption Index, Bitcoin miners in the U.S. account for 35.4% of the total global BTC hash rate distribution.

As U.S. companies have been increasingly accumulating new mining power, the Bitcoin hash rate has continued to post new historical highs, removing any trace of China’s mining ban.

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Goldman Sachs boosts tokenization efforts with new partnership

The open source Daml smart contract language forms the core of the Daml application stack, a core tech by Digital Asset.

American investment bank Goldman Sachs, a backer of major cryptocurrency firm Circle, is strengthening its tokenization efforts by partnering with the blockchain startup Digital Asset.

The partnership enables Goldman Sachs to use Daml, a development framework created by Digital Asset to allow financial institutions to build and execute agreements on blockchain, the company announced Wednesday.

One of core Digital Asset’s technologies, Daml will help Goldman Sachs develop its own “end-to-end tokenized asset infrastructure” that would support multiple asset classes on private and public blockchains, the announcement reads.

Mathew McDermott, global head of digital assets at Goldman Sachs, said that Daml-based solutions could potentially accelerate blockchain-based digitization workflows across financial institutions and clients by interconnecting various infrastructures:

“As we continue to build out our tokenization capabilities, we need solutions that could rapidly capture the full complexity and diversity of assets at the heart of our business for both digitally native or tokenized traditional assets, and be interoperable across multiple blockchains.”

Implementing the eponymous smart contract language, Daml is a platform for building multi-party applications aimed at eliminating double processing and manual work. Some of the world’s largest financial institutions such as BNP Paribas’ securities arm deployed Daml-based smart contracts to develop real-time trade and settlement applications.

Digital Asset did not immediately respond to Cointelegraph’s request for comment.

Related: Top US banks offer big incentives to lure crypto talent

Goldman Sachs previously claimed to be involved in some “extensive research” on tokenization in June 2019, with CEO David Solomon pointing out that global payment systems were moving to launch fiat-pegged cryptocurrencies known as stablecoins. The investment bank is known for investing in Circle, a principal developer of USD Coin (USDC), the world’s second-largest stablecoin by market capitalization after Tether (USDT).

After launching a limited Bitcoin (BTC) derivatives trading desk in May 2021, Goldman Sachs continued exploring crypto investment products, revealing plans for Ether (ETH) derivatives in June.

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Goldman Sachs Predicts Ethereum Could Hit $8,000 This Year

Goldman Sachs Predicts Ethereum Could Hit ,000 This YearGlobal investment bank Goldman Sachs is reportedly predicting that the price of ether could rise to $8,000 by year-end. The bank’s analysts explained that cryptocurrencies have traded in line with inflation breakevens since 2019. Ether Could Reach $8K by Year-End, According to Goldman Sachs Goldman Sachs has reportedly explained in a research note circulated by […]

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Infrastructure Provider Blockdaemon Raises $155 Million With Participation of Goldman Sachs

Infrastructure Provider Blockdaemon Raises 5 Million With Participation of Goldman SachsBlockdaemon, a blockchain infrastructure provider, has raised $155 million in its Series B funding round, which will aid its expansion plans to make acquisitions in the crypto infrastructure market. The funding round had the participation of Goldman Sachs, Softbank Vision Fund 2, Matrix Capital Management, Sapphire Ventures, and Morgan Creek Digital, among others. Blockdaemon Raises […]

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

One River Digital raises $41M from Goldman Sachs and Coinbase

One River Digital secures the first-ever raise to scale its crypto-focused institutional investment efforts.

One River Digital, a cryptocurrency-focused hedge fund offering exposure to Bitcoin (BTC) and Ether (ETH), has closed its first funding round after launching last year.

One River Digital president Sebastian Bea confirmed Wednesday that the company had raised $41 million in a Series A financing round from investors, including Goldman Sachs and Coinbase Ventures.

Other investors included American diversified global insurer Liberty Mutual Insurance and an alternative investment management firm, Infinity Investment Partners, as One River Digital announced Sept. 21.

According to the One River Digital president, the fresh capital will help the company further increase its investment opportunities to support the digital ecosystem.

“We will use these funds to accelerate our scale across investments, distribution and operations. These funds will help us better seek our purpose, which is to help institutions access and invest in the future of finance,” Bea said.

As previously reported, One River Digital was founded in 2020 by Eric Peters, founder and CEO of the startup’s parent company, One River Asset Management. The crypto fund is widely known in the cryptocurrency community, accumulating about $600 million worth of Bitcoin and Ether in late 2020, generating massive gains following a massive crypto rally in early 2021.

One River is backed by billionaire hedge fund manager Alan Howard, co-founder of the Brevan Howard, which reportedly acquired a 25% stake in One River Asset Management in October.

Related: Coinbase Ventures, Samsung NEXT back Metrika’s $14M Series A

“​​The experience and expertise of this team, together with our existing investors at Brevan Howard and our Academic and Regulatory Advisory Council, will be of great benefit to One River as we pursue our mission to be the leading institutional investment manager in digital assets,” Peters said.

As previously reported, One River Digital established its academic and regulatory advisory council in March 2021, bringing together prominent industry figures like Jay Clayton, a former chairman of the United States Securities and Exchange Commission. In May, One River Digital filed for a carbon-neutral Bitcoin exchange-traded fund.

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20

Bitcoin ‘heavy breakout’ fractal suggests BTC price can hit $250-$350K in 2021

The analogy appeared in anticipation that Bitcoin could post a 2017-like bull run, in which the price rose by more than 1,900%.

Bitcoin (BTC) has the potential to push its prices to between $250,000 and $350,000 by the end of 2021, a long-standing fractal suggests.

First spotted by pseudonymous analyst Bit Harington, the bullish setup drew its inspirations from Bitcoin's secular bull runs every time after halvings when the miner block reward gets cut in half. Analysts perceive the halving as a bullish event, which reduced the supply of newly mined BTC. 

Harington reminded that Bitcoin's prices surged by more than 600% after the first two halving events in 2012 and 2016 when measured from a so-called resistance/support (R/S) line, as shown in the chart below.

Bitcoin price performance after the first two halving events. Source: BuyBitcoinWorldWide, PlanB, and Bit Harington

The line represented a barrier during the period of price uptrend. Traders tested it for a breakout multiple times before successfully breaching it to log a new record high. When prices started correcting, they eventually bottomed out near the same line.

In 2020-2021, Bitcoin underwent a similar upside trajectory, bouncing from below $4,000 to rising to above $60,000. Again, Harington highlighted the $60,000-level as the same R/S line that kept trades from logging a clear bullish breakout.

The analyst hinted that Bitcoin would break above it to soar towards a new record price level.

Cointelegraph Markets analyst Michaël van de Poppe reacted to Harington's fractal theory, adding that it would lead the Bitcoin prices to the $250,000-$350,000 range.

He noted, however, that the massive run-up could also prompt a brutal correction that can push Bitcoin prices back toward $65,000, right near the Harington's S/R level of $60,000.

Do fundamentals agree?

Bitcoin skyrocketed after crashing below $4,000 in March 2020 primarily due to the global central banks' loose monetary policies to curb the economic aftermath of the Covid-19 pandemic. The cryptocurrency closed the year at around $30,000, as retail and institutional investors woke up to its safe-haven narrative against a falling U.S. dollar and rising inflation fears.

So far in 2021, the price of Bitcoin topped around $65,000 before correcting lower below $50,000. At its year-to-date (YTD) low, the pair traded for $29,301 on the Coinbase exchange. Its losses were led by a sudden ban on all crypto activities in China (including mining) and Elon Musk's alarming tweets over Bitcoin's booming carbon footprints.

Bitcoin price performance throughout the history. Source: TradingView.com

BTC balance on exchanges drops to fresh lows

The cryptocurrency held prices above $30,000 as its reserves across exchanges dropped significantly.

Blockchain data analytics service CryptoQuant reported that Bitcoin's balances across the crypto trading platforms slipped to around 2.37 million BTC last week, its lowest in more than a year.

Bitcoin reserves across all exchanges. Source: CryptoQuant

A decrease in Bitcoin reserves represents traders' intentions to hold the cryptocurrency instead of trading it for altcoins and fiat currencies.

Bitcoin hashrate has nearly recovered

Bitcoin's recovery from below $30,000 to almost $50,000 also coincided with its V-shaped hashrate recovery.

Related: BTC price falls back to $47K as weekly close neatly tracks Bitcoin futures gap

For the uninitiated, the Bitcoin network's computation power plunged to 84.79 million terahashes per second (TH/s) in early July from 180.66 million TH/s in late May. The drop surfaced as many miners responded to China's crypto crackdown by either shutting down their facilities or moving their operations abroad.

The seven-day average Bitcoin hashrate in recent history. Source: Blockchain.com

But the network recovered more than half of its lost hashrate, hitting 136.92 million TH/s on Sept. 18, indicating that China's direct ban did not have a prolonged effect on Bitcoin's mining sector. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Crypto Biz: Microsoft enters the metaverse, Jan. 14-20