According to Kelly, three major factors that will inevitably lead the bitcoin price to the next support levels at $12,000 and $14,00 are the entrance of banks such as Goldman Sachs, clarity from regulators on bitcoin’s legality, and the initiation of the blockchain week in New York on May 14.
Earlier this week, as reported by CCN, Goldman Sachs has officially confirmed that it has begun the development of its cryptocurrency trading desk, which will allow the bank’s clients to invest in bitcoin and the cryptocurrency market. Executives at Goldman Sachs stated that the growing demand from clients for bitcoin as an alternative store of value led the bank to support bitcoin trading.
Rana Yared, an executive at Goldman Sachs, said that despite the skepticism towards bitcoin by the bank’s executives, the company came to a decision to embrace bitcoin due to overwhelming demand from clients.
“I would not describe myself as a true believer who wakes up thinking Bitcoin will take over the world. For almost every person involved, there has been personal skepticism brought to the table. It resonates with us when a client says, ‘I want to hold Bitcoin or Bitcoin futures because I think it is an alternate store of value,” said Yared.
Sharing the same sentiment as VISA executive and Bitcoin Foundation founder Jon Matonis, Kelly said that major investment banks like Goldman Sachs can provide significant liquidity to the market and introduce cryptocurrencies as a new asset class to investors in the traditional finance sector…