Goldman Sachs Group Inc. voiced concern about cryptocurrency, saying investors should not be easily convinced about the narrative that a rise in the adoption of digital currencies will lead to higher prices.
Goldman strategists Zach Pandl and Isabella Rosenberg said the growing mainstream appeal of tokens such as Bitcoin has increased correlation with other macro assets. Henceforth, crypto has become the centre of rotations across asset classes.
The strategists also added that bitcoin’s price has positive and negative correlations. While positively correlating with proxies for consumer-price risks like breakeven inflation and crude oil prices and “frontier” technology stocks, it …