Former Goldman Sachs CEO optimistic about the crypto space

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Jan 25, 2022
  • Lloyd Blankfein, the former CEO at Goldman Sachs, has opined that crypto is happening.
  • Blankfein added that his view regarding the sector was changing and hinted at investing in the sector.
  • Blankfein’s remarks come as the market continues to register dips.

The recent crash in the cryptocurrency market has triggered panic among investors that are now liquidating their holdings to avoid more losses. However, the selloff has been mostly attributed to retail traders. Institutional traders are still holding or accumulating more during the dip.

According to the former CEO at Goldman Sachs, Lloyd Blankfein, the crypto sector is still “happening” despite the market meltdown.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Optimistic about the crypto sector

Blankfein noted that the crypto sector had evolved over the past year. Blankfein’s opinion regarding the crypto sector has not always been positive. Early last year, Blankfein expressed his scepticism over the use of Bitcoin (BTC/USD) as a store of value due to the high volatility.

However, in a recent interview with CNBC, Blankfein’s opinion changed. He pointed to the growth of the crypto industry in 2021. Despite the meltdown that has happened during the last week, Blankfein noted that his view regarding the crypto market was evolving and that ‘crypto is happening.’

Blankfein also addressed the recent price dip, noting that institutional players had already invested much in crypto. He also noted that Bitcoin and other cryptocurrencies could change the financial landscape by promoting easy transfers and lowering the credit risk. The 67-year old American also hinted that he would soon invest in crypto assets.

The Crypto market is still in the red

The cryptocurrency market is still recording major dips. Since the beginning of this month, around $1trillion has been wiped off the global market cap. The crash is not showing signs of slowing down despite the optimism shown by the former CEO of Goldman Sachs.

Over the past month, Bitcoin’s price has dropped by around 29%. During the past 24 hours, it has made a slight recovery to trade at around $36,009 at the time of writing. Ethereum, the largest altcoin, has shed around 42% over the past month.

The crypto market was spooked by news of the US Federal Reserve meeting to discuss the monetary policy. The meeting will address the high levels of inflation in the US and develop solutions that will aid the economy.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker, eToro
10/10
68% of retail CFD accounts lose money