GOLDMAN SACHS FINALLY CONSIDERS CRYPTO AS AN ASSET CLASS – A YEAR AFTER HAVING STATED JUST THE OPPOSITE

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Commentary from JP Fund Services written by Michael Kelley

By the third week of May, the crypto markets saw a bit more volatility coming its way. Did I hear someone shouting, Opportunity? As always in trading asset classes of any kind, patience and a calm-hand are virtues. For those who get emotional, or who are looking to get in and out right quick and hope to make a killing, history shows a huge majority of those traders are apt to lose a fortune, instead, in this type of market. Be in it to win it, and don’t panic! 

Stay the course and have long-term horizons. According to IntoTheBlock, there are more longer-term holders of Bitcoin than ever, but panic selling with the recent volatility has hurt many shorter-term investors.

Goldman Sachs has finally considered cryptocurrency an asset class, reversing what they were espousing only a year ago. Meanwhile, outside the United States, Singapore’s largest, and one of the world’s biggest banks by assets under management, DBS, put forward a bullish case for Bitcoin in a client note during the third week of May.

The bank said allocating funds to Bitcoin was an “opportunity that [fiat] money cannot buy.” The Third Week of May also saw major inflows into Ethereum (ETH), the world’s second-largest cryptocurrency by market cap, and we learned more about Polkastarter (POLS), the finance project that provides users with a decentralized launchpad for crowdfunding.

As the month came to a close, a British Member of Parliament, who is chairman of Britain’s Foreign Affairs Committee, called for Parliament to have a ‘safe space’ for crypto.

We also learned more about the newly formed Bitcoin Mining Council, and Elon Musk’s power to tweet away the blues. He and Michael Saylor, MicroStrategy’s boss, are spearheading the council, which is committed to publishing current & planned renewable energies for usage in Bitcoin mining, and they have requested miners worldwide to do so.