Goldman Sachs Forecasts Crypto Trading Surge

Goldman Sachs, a Wall Street bank, forecasts that trading volumes in the crypto asset ecosystem will increase substantially shortly, citing potentially bullish indicators such as the US Federal Reserve’s interest rate-cutting measures in 2024, the approval of a spot Bitcoin ETF, and the halving.

As per a report by Reuters, the Wall Street behemoth anticipates a “substantial increase” in cryptocurrency trading activity over the coming quarters. The bank’s global director of digital assets, Mathew McDermott, was quoted as saying,

“Probably within the next one to two years you will see a big significant uptick in the quantum trading on-chain, probably three to five years to really see these marketplaces at scale.”

Previously, Blackrock CEO Larry Fink predicted that asset tokenization would constitute “the next generation of markets.” McDermott, on the other hand, considers this a considerable distance from “exclusively replicating the preponderance of financial markets on blockchain.”

The decision to maintain the benchmark interest rate at 5.25 to 5.5% was made by the US Federal Reserve at the Federal Open Market Committee (FOMC) meeting in December 2023.

As a result, the price of Bitcoin (BTC) increased by approximately 5%, rebounding from its low point of $40,000 earlier in the week.

In the interim, the CME FedWatch Tool, an indicator of sentiment regarding the probability that the Federal Reserve will alter the Federal target rate during its subsequent FOMC meeting, projects that the present target rate will remain unchanged following the meeting on January 31, 2024.

Thus, the price of Bitcoin could increase further if the Federal Reserve maintains current interest rates. Dan Tapiero, an investment manager and macro expert, predicted in November 2023 that the price of Bitcoin would surpass $100,000 during the subsequent bull market in 2025.

Likewise, Standard Chartered predicted that the leading cryptocurrency would attain a value of $100,000 by the conclusion of 2024.