Bitcoin gets a lot of boost from Goldman Sachs

Bitcoin gets a lot of boost from Goldman Sachs ...

The crypto market hasn''t experienced its greatest level since the beginning of the year.

Volatility has never been so high. After months of fluctuating coin prices starting with bitcoin, the king of crypto, a slight jump swung.

Since then, digital currencies have fluctuated, unable to achieve certain symbolic limits. Bitcoin, for example, is struggling to rise above $50,000 despite receiving new information.

For example, many important critical crypto investors have made their mea culpa. In turn, billionaires and big names in traditional finance such as Ken Griffin, Ray Dalio, and Bill Gross became aware that bitcoin had established its position as a platform in which we could invest.

On the regulatory front, President Joe Biden approved an executive order that would urge federal agencies not to undermine innovation. A way to encourage less draconian regulation in the crypto world, according to crypto entrepreneurs. Unlike Sam Bankman-Fried, the CEO of FTX.com, would like to see the Biden administration issue regulation in the sector as soon as possible.

A First Bitcoin-Backed Loan

It still remains to convince the Securities and Exchange Commission to approve a spot bitcoin exchange-traded fund EFT. Basically, the agency remains opposed to spot ETFs based on actual bitcoin holdings. Overall, the industry has never been in such a ideal situation vis-a-vis the general public as well as regulators and traditional finance.

It is therefore no surprise that Goldman Sachs, a well-known investment bank, has just taken a step forward in the crypto-related services it offers. The establishment has just made the very first lending facility backed by bitcoin.

The borrowing client may, by this transaction, use bitcoin (BTC) as collateral to obtain a cash loan.

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Goldman Sachs did not provide additional details, but the legacy bank now adds a service previously offered by crypto firms. Bloomberg was the first to provide information about the lending facility.

The transaction demonstrates how mainstream finance is embracing bitcoin and crypto as part of the public offering. This is the case for Jefferies Financial and Cowen Inc., who now has a subsidiary specializing in digital assets.

Goldman Sachs Expands Its Crypto Services.

This is not the first time that Goldman Sachs has given up on cryptocurrencies and more specifically on bitcoin for the first time.

In March, the bank said it had just started its first over-the-counter (OTC) crypto options trade. NDO, a bitcoin-linked currency, was traded, according to Goldman Sachs.

Crypto investors use options to hedge risks or increase yields, and over-the-counter transactions are larger transactions conducted privately.

Galaxy Digital, a company that invests in cryptocurrency and particularly in bitcoin, was facilitated the transaction.

"This is the first OTC crypto transaction by a major bank in the United States," Goldman Sachs continues expanding its cryptocurrency offerings, demonstrating the continued maturation and adoption of digital assets by banking institutions," Galaxy said at the time.

Galaxy, a global provider of blockchain and cryptocurrency financing for institutions, was founded and led by billionaire Mike Novogratz, a bitcoin evangelist. Novogratz is also a former Goldman Sachs banker.

These transactions suggest that Goldman Sachs believes cryptocurrency is sufficiently stable to be competed for by large financial institutions.

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