FX.co ★ Bitcoin Local and Global Perspectives: "big evolution", GS and ETF

Goldman Sachs CEO David Solomon expressed the opinion that a "big evolution" could soon take place in the cryptocurrency market. Now the largest investment bank has already started providing depository services. But in this industry, traditional financial institutions are still severely limited.

Solomon noted that now there is an increase in interest in the cryptocurrency industry from the bank's clients and Goldman Sachs is in a constant way of being able to satisfy it.

So, according to the head of the investment bank, significant changes may occur in the crypto market over the next two years. And back in March, Mathew McDermott of GS announced that the point of no return in their role as a safeguard against depreciation of cryptocurrencies has already been passed. But he believes that due to the large selection of digital coins, bitcoin is unlikely to maintain its dominance.

According to Goldman Sachs, the demand in the virtual currency market is now higher than it was in 2017. This is due to the growing interest of institutional investors, but which ones, the bank did not specify.

Meanwhile, the bank has filed an application with the SEC to launch its own bitcoin ETF.

Experts' opinions differ on how the approval and launch of exchange-traded funds for bitcoin will affect the crypto market.

Some believe that this will give greater freedom to large investors who are interested in digital currencies but are confused by the issue of regulation. Also, the ETF will remove the issue of concern about the security of bitcoins from such market participants.

Others point out that with the advent of ETFs, bitcoin will become mainstream in the financial world, which means that the market will receive a new impetus for growth.

Another opinion confirms that the launch of an exchange-traded fund will bring new investors and capital to the market, increase liquidity, but may become a double-edged sword. The flip side of the coin may be the emergence of a need for market centralization. Moreover, the arrival of a large number of speculators on the market can provoke frequent episodes of "short play."

But some believe that the launch of a bitcoin ETF in the US will not have a significant impact on the market. Experts with this opinion appeal to the experience of Canada, where such exchange-traded funds are already operating. Moreover, despite the permission of the country's authorities for ETFs, bitcoin still fell from $58,000 to $44,000 per coin.

Nevertheless, locally, bitcoin did not manage to break through the "ill-fated" resistance area of 58,340.66 - 59,517.79. As expected in yesterday's review, the BTC/USD quotes fell to the level of 100 according to Fibo Expansion, which is still relevant as a support. If it holds, there is a chance of recovery to the resistance zone 58,340.66 - 59,517.79. And if it is broken with a consolidation below, bitcoin may decline first to the area of $54,000, and then to $51,000 per coin.