Financial giant Goldman Sachs predicted that Bitcoin would reach $ 4,000 after overcoming a new sharp drop in prices. The Bank reports that in the first half of 2017, the price of bitcoin remained to average $ 1,000, then moved to a record high of nearly $ 3,000, and before the end of June, with about $ 2,500. “There was a gain in the first half of around 168%,” the source said.
From there, Goldman Sachs’ latest reports indicated that bitcoin could suffer a sharp drop before reaching a new record of about $ 4,000. So, in a note that was sent to the bank’s customers on Sunday, Sheba Jafari, Head of Technical Strategy at Goldman Sachs, commented that although the correction in the bitcoin price had not taken its course – as it stated time ago -, the Cryptocoin was “ultimately climbing”.
Previously, in another report, the bank had confirmed that they would use a hedge fund for bitcoins that are being actively traded; By this time, Jafari had stated that bitcoin would have the constant of $2618. He then predicted a sum of $ 3134 – which was barely reached – and would not fall below $ 1915.
Also, to date, Goldman Sachs was expected to issue reports on a regular basis so its customers could know what times are good to invest or sell.
Here we must add that the word “bubble” in finance refers to a phenomenon characterized by an abnormal rise in the price of an asset. This process results in the speculative price moving further away from the real price of the property.
Likewise, Jeffrey Kleintop, the chief investment officer at Charles Schwab, said: “Bitcoin was in a bubble like we’ve never seen before.” Kleintop’s warning came after a few weeks in which billionaire Mark Cuban, owner of the NBA team Dallas Mavericks, tweeted similar concerns
.Now, among the causes of this possible rise in the price of Bitcoin are: on the one hand, that the commissions in the bitcoin transactions are currently taking too long, and the fees to complete these operations is quite high, due to the saturation of the network. Not to mention that it is not yet decided which of the proposed solutions to this problem, or the immediate implementation of SegWit.
On the other hand, in a general sense, the global adoption, development and growth of the number of users in the Bitcoin network, including the demand for the cryptocoin, increases day by day. This leads to the need to make regulations more Practical and efficient for users, businesses and companies, in order to attract more investors in public or private, business or financial sectors.
Goldman Sachs’ predictions could also be related to the recent legalization of Bitcoin in Japan and its tax release, measures that could lead to greater acceptance of the currency by thousands of new restaurants, cafes, shops and merchants. Then Australia adds, which also left bitcoin tax free as of this month.
Also, it should be noted that Goldman Sachs has paid close attention to the technology behind Bitcoin, the blockchain, as it provides solutions to the financial sector. Also, the entity was part of the consortium R3, which has been dedicated since 2014 to explore and apply the possibilities of blockchain technology, especially in finance and banking areas. And although the bank left the consortium last year, or is focusing on the cryptocoins, it does not intend to stop investigating the technology.