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The anticipation surrounding BTC's upcoming halving has sparked a noticeable shift in investor sentiment. For example, there has been a significant surge in interest in the crypto asset market among Goldman Sachs' hedge fund clients.
This resurgence in enthusiasm extends not only to speculative individual investors but also to mature institutional investors.
Max Minton, Goldman Sachs' head of digital assets in the Asia-Pacific region, stated that the approval of BTC ETFs has reignited interest among the company's clients. Many are either actively investing in the crypto asset market or exploring its potential.
Minton added, "Last year was relatively quiet, but since the beginning of this year, we have seen a resurgence of interest among our clients in hiring, pipelines, and trading volumes."
Goldman's current clients primarily consist of traditional hedge funds, which generate the majority of the profits.
Additionally, Goldman is expanding its business scope to cover various clients, including asset management firms, its own banking clients, and certain companies specialized in digital assets.
Minton mentioned that clients utilize crypto asset derivatives for speculative forecasting, yield enhancement, and hedging.
Minton also pointed out that products related to BTC continue to garner the most attention from clients. However, depending on the potential approval of Ethereum ETFs in the United States, client interest in Ethereum-related products may change.
BTC's impending halving is also a reason for people to refocus on BTC.
This event is set to occur at the end of April, when BTC mining rewards will halve, prompting miners to upgrade to more efficient technologies to maintain profitability.
This once-every-four-years update is crucial for maintaining BTC's economic model, as rewards will decrease from the current 6.25 BTC to 3.125 BTC.
Following BTC's halving in 2012, its market value soared by over 8000%. Similarly, after the halving in 2016, BTC's value increased by over 1400%. Likewise, after the halving in 2020, BTC's value surged by over 700%.
Although the Stock-to-Flow (S2F) model, typically applied to commodities like gold, has its flaws, it serves as one method for evaluating BTC's value.
The S2F model has demonstrated historical correlations with BTC price fluctuations. As BTC becomes increasingly scarce, experts anticipate its value to rise from current levels.
Pedro Palandrani, a researcher at Global X, remarked, "BTC is about to undergo another shake-up, with the next halving event possibly occurring in April 2024. Historically, there has been a correlation between halving events and subsequent BTC price increases."
"According to the S2F model, by 2028, BTC's price could rise to over $130,000."
From trading to blockchain innovation, Goldman's involvement in the crypto asset market reflects broader institutional recognition of digital assets.
As the halving approaches, the bank's positive stance on digital assets, coupled with its clients' growing interest, represents a pivotal moment for the crypto asset market.
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Post time 8-4-2024 12:24:40