Three-quarters of institutional crypto investors believe Bitcoin could reach $100K in 2021, says Goldman Sachs
61 percent of the survey’s participants say that they’ll likely increase their crypto holdings.
Mon, 08 Mar 2021, 06:08 am UTC
Goldman Sachs said that demand for crypto from institutional investors will continue unabated this year. In fact, its recent survey revealed that more than three-quarters of its clients are optimistic that Bitcoin could climb to $100,000 in 2021 with a majority saying that they’ll likely increase their crypto holdings in the near future.
In a survey by the investment bank, 76 percent of its institutional clients believe that Bitcoin’s price could soar to $100,000 this year, according to Bitcoin.com. The bank also said that 61 percent of the survey’s participants say that they’ll likely increase their crypto holdings.
This was revealed by Goldman Sach’s head of Digital Assets for the bank’s Global Markets Division Mathew McDermott in a podcast published on Friday. The survey involved 280 of the bank’s institutional clients composed of asset managers, corporate treasurers, insurance and pension funds, hedge funds, and macro funds.
The bank noted that cryptocurrency has become increasingly popular among its institutional clientele. “What’s been particularly interesting, 40% of the clients currently have exposure to cryptocurrencies,” McDermott said. The executive added that this exposure could be “physical through derivatives, through securities products, or other offerings in the market.”
McDermott also revealed that institutional demand, which is one of the drivers of the current rally of the crypto market, will likely continue in the future. “In terms of institutional demand, we have seen no signs of that abating,” he said. “We see a huge amount of demand institutionally, [and] we’re also seeing that reflected in the private wealth management space as well.”
He revealed corporate treasurers are basically interested in cryptocurrencies in two different aspects. The first is whether or not they should invest in Bitcoin just like the publicly-listed firms MicroStrategy and Square. Some companies have turned to cryptos such as BTC as a hedge against the devaluation of fiat caused by the money printing activities of central banks.
On the other hand, some companies are already mulling the possibility of accepting cryptocurrency as payment. For instance, Tesla recently announced what it will be accepting crypto as payment for products.
Institutional investors are also very bullish on Bitcoin’s price trajectory. “The survey was quite insightful in the sense that 76% agreed that the price by the end of the year would be between $40,000 and $100,000,” McDermott noted. “But, 22% were predicting over $100,000.”
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