Bitcoin Value The rollercoaster ride continues as banks struggle to figure out how to deal with cryptocurrency.
The price of bitcoin has continued to fluctuate, dropping by $3,000 in a matter of hours, as major banks debate how to handle the cryptocurrency.
According to CoinMarketCap, Bitcoin has reached highs of $39,769 and lows of $36,613 in the last 24 hours, as Goldman Sachs, HSBC, and the Bank of England take opposing positions on the coin.
“Bitcoin is now considered an investable asset,” said Mathew McDermott, Goldman Sachs’ global head of digital assets, in a report published by Yahoo Finance on Monday. It comes with its own set of risks, partially because it’s all new and in the process of being adopted.”
After a three-year absence, Goldman Sachs reopened its cryptocurrency trading desk in March.
Given the comparison to digital gold, bitcoin “doesn’t act as one might intuitively expect compared to other properties,” according to McDermott. However, clients and others are treating it as if it were a new asset class, which is noteworthy since we don’t really get to see the advent of a new asset class.”
Noel Quinn, the chief executive of HSBC, took a more cautious tone in an interview with Reuters published on Monday. “We are not into Bitcoin as an asset class because of the volatility,” he said. “If our clients want to be there, they can, but we are not promoting it as an asset class within our wealth management business.”
Quinn, on the other hand, described bitcoin as “more of an asset class than a payment vehicle.”
Since MicroStrategy has invested heavily in bitcoin and owns tens of thousands of virtual coins, HSBC barred users of its online share-trading platform from purchasing shares in the company in April.
Andrew Bailey, the Governor of the Bank of England, recently commented on bitcoin. “It’s quick to get carried away with financial innovation,” he said during a virtual Treasury select committee hearing on Monday, according to CNN. It’s why I’m skeptical about crypto assets, frankly, because they’re dangerous and there’s a huge enthusiasm out there.”
Last week, JPMorgan analysts told clients that institutional investors are “fleeing” from bitcoin and returning to gold. In 2017, JP Morgan CEO Jamie Dimon called bitcoin a “fraud.” In 2019, the bank launched its own cryptocurrency, called JPM Coin.
Bitcoin appears to be sensitive. This is a brief summary.