In brief:
- Crypto twitter has been abuzz with conversations of Goldman Sachs advising against Bitcoin.
- Since the conversation began, Bitcoin has gained value from $9,140 to a local top of $9,540.
- Some speculate it is a classic head-fake from the bank and that Goldman Sachs will eventually admit to owning BTC.
The King of Crypto is once again doing what it does best by surprising investors and traders with a retest of $9,500. This is despite the earlier mentioned possibility of a possible slow week with CME Bitcoin futures expiring tomorrow, 29th May. Bitcoin is currently trading at $9.460 (Binance rate) and looks set to keep pushing upwards with less than 24 hours till the contracts expire.
Goldman Sachs Says Cryptocurrencies are Not an Asset Class
The push to the local top of $9,540 comes a day after Goldman Sachs stated that Bitcoin and cryptocurrencies are not an asset class. This information was presented via slides apparently from the firm’s May 27th call that discussed the US economic outlook. One of the slides – available below – clearly states that Bitcoin and cryptocurrencies are not an asset class. Therefore, they are not viable investments. However, the authenticity of the slides circulating on Twitter is yet to be confirmed.
Tyler Winklevoss: Goldman Sachs Report is Probably a Head Fake
In a Tweet in response to news of Goldman Sachs advising against Bitcoin, Co-founder and CEO of Gemini, Tyler Winklevoss, put forth the notion that Goldman Sachs is pulling off a classic head fake by denying their interest in BTC.
The more I think about it, the Goldman report is probably a head fake. Seems like something the vampire squid would do. They’re probably rebranding to ‘Goldman Stacking Sats’ as we speak.
— Tyler Winklevoss (@tylerwinklevoss) May 27, 2020
What is a Head-Fake in Technical Analysis?
A head fake is a term used by chartists who love to use Bollinger Bands when doing their technical analysis. A head fake occurs when the asset being analyzed seems to move in one direction, only to reverse course quickly and significantly. It is similar to how a rugby player sidesteps his opponent by suggesting with his head that he is moving in one direction only for his feet to the opposite.
Willy Woo: Goldman Sachs Wants to buy More Bitcoin
Veteran Bitcoin analyst, Willy Woo, was of a similar opinion in that Goldman Sachs is advising against Bitcoin only for the investment firm to secretly stack some more Sats. Mr. Woo’s tweet went on to point out that Goldman Sachs invested in the crypto company of Circle. The full tweet by Willy Woo can be found below.
Goldman Sachs loves Bitcoin so much that they tell their clients to not buy it, so they can buy more, which includes their investment in Circle.
— Willy Woo (@woonomic) May 28, 2020
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.