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Bitcoin Soars As Goldman Sachs Hires Cryptocurrency Trader

May 3, 2018 at 20:14 by Matt Jackson

Goldman Sachs has finally declared that Bitcoin is “not a fraud” and has hired their first cryptocurrency trader as they plan to become the first Wall Street bank to offer Bitcoin trading. The bank has said that they will limit initial trading to a handful of derivatives, but this represents a major step forward for Bitcoin and for the cryptocurrency market as a whole. Bitcoin price topped $9,600 at 20:00 GMT, having broken several resistance lines. Bulls are looking for the price to end the day above $9,650 in order to try and avoid the possibility of a double top forming.

Until recently, Wall Street banks and investment firms have labeled Bitcoin as everything from a scam to a bubble. Despite this, Goldman Sachs is being forced to rethink its opinion, amid considerable pressure from its customers.

The New York Times reports that the investment firm is readying itself to launch Bitcoin trading for institutional investors.

Rana Yared, of Goldman Sachs, said “Goldman had concluded that Bitcoin is not a fraud and does not have the characteristics of a currency,” before going on to say that “it is not a new risk that we don’t understand. It is just a heightened risk that we need to be extra aware of.”

Yared is referring partially to the very high levels of volatility that are seen in Bitcoin prices, and this was immediately evident in the day after the news broke. Bitcoin prices started the day at $9,190.47 and $9,623.25 at 21:00 GMT. Bitcoin markets operate 24 hours a day and prices will continue to move overnight, but the acceptance of Bitcoin as a traded commodity, by a bank of the magnitude of Goldman Sachs, represents a huge step forward for Bitcoin and other cryptocurrencies.

The company has even employed its first “digital assets” trader, Justin Schmidt. An exact date for trading has not yet been set, but it is expected to be within the next few weeks.

Despite Goldman Sachs’ words, however, not everybody has been so willing to change their stance. Even Yared herself does not sound like a true convert. She said I would not describe myself as a true believer who wakes up thinking Bitcoin will take over the world.” Clearly, while this is good news for cryptocurrency investors, there is a long way to go until Bitcoin becomes mainstream.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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