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Wall Street is buying large amounts of Bitcoin despite Goldman Sachs anti-crypto attitude

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Wall Street is accumulating Bitcoin (BTC) at a rapid rate, regardless of what skeptics like Goldman Sachs have to say.

A new report revealed that institutional investors have bought a large amount of BTC since its halving on May 11. Approximately 12,337 BTC have been minted since halving, but during the same time period, Grayscale Investments has purchased close to 19,000 bitcoins on behalf of its institution's clients.

"Smart money doesn't care what Goldman Sachs says"

Institutional investors are gravitating further towards bitcoin as a potential hedge against inflation and the general dark cloud of economic uncertainty caused by the coronavirus pandemic.

Grayscale Investments, one of the world's largest cryptocurrency fund managers, enjoys the greatest institutional interest in digital assets. The data provided by Kevin Rooke, an independent cryptocurrency researcher, shows that 18,910 BTC have been going to the Grayscale Bitcoin Trust since halving. However, there have only been 12,337 BTCs produced since May 11. This implies that Grayscale Investments has purchased over 150% of all BTC mined since halving.

Commenting on this gruesome information, Rooke stated that Wall Street is buying bitcoin without heeding Goldman Sachs' advice regarding bitcoin.

Therefore, it is safe to say that bitcoin miners are not producing enough BTC to meet the needs of institutional investors who trust Grayscale Investments. This is incredibly bullish, especially considering that BTC recently held its third halving where the new supply of the asset was cut in half.

Some proponents suggest that halving the block reward would be a tacit boost to the long-term price of BTC. They believe that as BTC supply shrinks while demand remains the same, bitcoin's price should rise.

Now, there is a clear demand for bitcoin, even from institutional investors. It should be noted that these investors have not sourced from BTC just this month. Other report does a couple of days showed that Grayscale bought around 34% of all BTC minted in the 100 days prior to halving. Looking ahead, the fund bought a staggering 60,762 BTC during that period, representing a notable increase from last year.

Is Bitcoin becoming mainstream?

In a package filtered slides From an investor call on Wednesday, Goldman Sachs completely dismissed bitcoin as a viable investment. Why? The reasons given include bitcoin's inability to generate cash flow, it doesn't protect against inflation and neither "It provides consistent diversification benefits."

While some may take Goldman's comments as pessimistic, some cryptocurrency watchers think it's actually a good sign. Analyst Dave the Wave, for example, he claimed The fact that the unconditional investment bank included bitcoin in its call means that they are closely monitoring it.

“My opinion: any advertisement is good advertisement. BTC is on their radar, and they have had to respond. The content of the answer is secondary ”.

The ongoing liquidity injections by central banks following COVID-19 have been criticized by financial experts who believe they will do more harm than good in the long run. Such Wall Street critics as Paul Tudor Jones They have bought bitcoin with the belief that it is a great protection against high monetary inflation.

Although there are still detractors like Goldman Sachs, Bitcoin is certainly drawing a lot of mainstream attention. Years ago, no one could have imagined that the pioneering cryptocurrency would attract such a high level of institutional interest. It remains to be seen whether this momentum will continue for the rest of the year.





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