Goldman Sachs bank has published a report that specifically mentions the deep decline of cryptocurrencies in recent days. The report likened the issue of mainstream adoption of cryptoassets to a “double-edged sword”.
It is stated that as adoption strengthens, the correlation of cryptocurrencies with traditional markets increases, and this risks removing the advantages and temptations of owning digital assets.
It is stated that Bitcoin started to exhibit more similar movements with technology stocks, but followed a opposite course with the dollar and real interest rates.
“The drop in Bitcoin was associated with a decline in under-profit tech stocks and IPOs that reacted negatively to the Federal Reserve's move towards interest rate hikes.”
"Some assets will appreciate but will not be immune to macroeconomic developments"
Goldman Sachs also stated that the fall in cryptocurrency prices has led to a decline in DeFi borrowing and liquidations, just like in the traditional financial system.
The report also states that developments in the field of Blockchain, especially Metaverse, may increase the value of some digital assets over time. But the bank's analysts still do not think that cryptocurrencies can be immune to broadly influential decisions by central banks.
Goldman Sachs Has No Digital Currency Plans
Goldman Sachs Group reported that it is continuing its research on issuing a stablecoin in collaboration with other companies, but has no plans to issue a digital currency anytime soon.
Goldman Sachs Spokesperson Maeve DuVally said:
“We have no plans to launch a Goldman Sachs coin anytime soon. We continue to see value in working closely with private sector entities to create a pervasive stablecoin with transparent governance that meets legal and regulatory mandates.”
Goldman Sachs did not disclose which companies and organizations it is working with for the stablecoin.