Why are Goldman Sachs clients so suddenly interested in Bitcoin?

Original title: Goldman Sachs Clients Interested in Bitcoin as Halving Nears

Original source: beincrypto

Original compilation: Blockchain Knight

The expectations surrounding BTC’s upcoming halving have triggered a clear shift in investor sentiment. Goldman Sachs, for example, has seen a surge in interest from its hedge fund clients in the Crypto asset market.

This resurgence of enthusiasm is not limited to speculative individual investors, but also extends to sophisticated institutional investors.

Max Minton, head of digital assets for Asia Pacific at Goldman Sachs Group Inc., said the approval of the BTC ETF has reignited interest among the firm’s clients. Many people are either actively investing in the Crypto asset market or exploring the potential to do so.

Minton added: “Last year was a quieter year, but since the start of this year we have seen client interest in onboarding, pipeline and deal volume All have recovered."

Goldman Sachs' current clients are mainly traditional hedge funds, which generate most of the returns.

In addition, Goldman Sachs is expanding its reach to cover a variety of clients. These clients include asset managers, their own banking clients and certain companies specializing in digital assets.

Minton mentioned that the customer Use Crypto asset derivatives for speculative predictions, yield improvement, and hedging.

Minton also pointed out that BTC-related products continue to attract the most attention from customers. However, customer interest in Ethereum-related products may change based on possible U.S. approval of an Ethereum ETF.

BTC is about to be halved, which is what prompts people to pay attention to BTC again.

This event will occur at the end of April, when BTC mining rewards will be halved, which will prompt miners to upgrade to more efficient technology to Maintain profitability.

This quadrennial update, which is critical to maintaining BTC’s economic model, will see rewards drop from the current 6.25BTC to 3.125BTC.

After the BTC halving in 2012, the market capitalization surged by more than 8,000%. Likewise, after the 2016 halving, BTC increased in value by over 1,400%. Likewise, after the 2020 halving, the value of BTC increased by over 700%.

Although usually applied to gold The S2F (stock-to-flow) model of other commodities has its flaws, but it is one way to assess the value of BTC.

The S2F model has demonstrated historical correlation with BTC price fluctuations. As BTC becomes increasingly scarce, experts expect its value to climb from its current price.

Pedro Palandrani, a researcher at Global X, said: "BTC is about to experience another shock, and the next halving event may occur in 2024. April 2020. Historically, there has been a correlation between halving events and subsequent BTC price increases."

"According to the S2F model, by 2028 , the price of BTC may rise to more than $130,000."

From trading to blockchain innovation, Goldman Sachs’ participation in the Crypto asset market reflects Increased recognition of digital assets by a wider range of institutions.

As the halving approaches, the bank’s positive stance on digital assets, coupled with growing interest from its clients, represents a A critical moment for the market.

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