Swiss Bank Digital Assets Head Refutes Goldman Sachs’ Bitcoin Report

Michael LaVere
  • Swissquote Bank digital assets head Chris Thomas published a rebuttal to Goldman Sachs' report dismissing bitcoin as an asset.
  • Thomas argued bitcoin's volatility is normal for an infant market and should be considered in a diversified portfolio. 

A Swiss bank executive has published a rebuttal against Goldman Sachs' scathing analysis of bitcoin which claimed that cryptocurrencies are not an asset class. 

On May 27, a leaked outlook presentation by Goldman Sachs revealed that the investment bank is bearish on the future of bitcoin. The Wall Street bank claimed that bitcoin and cryptocurrencies should not be considered an asset class and are too volatile for rational investment. 

Chris Thomas, head of digital assets at Swissquote Bank, published a point-by-point rebuttal to the Goldman report, calling the bank’s analysis of bitcoin a disservice to investors. 

According to the release, bitcoin represents an emerging asset class that will prove suitable for both retail and institutional participants. While Thomas admitted the technology is still at an “early stage,” the Swiss exec argued that crypto-assets deserve to be considered in a diversified portfolio. 

He wrote, 

Goldman Sachs is ignoring the strong foundations of this emerging asset class based on cryptographic principles and a world where many, if not all, assets will be tokenised, and trading them will be democratised.

Thomas continued, refuting Goldman’s dismissal of bitcoin due to its high price volatility. He argued that volatility is “absolutely natural” for a market in its infancy and cautioned investors against over-extending themselves in crypto. 

Thomas also took issue with the Goldman report highlighting Bitcoin’s 37% price plunge in mid-March. 

He wrote, 

Absolutely, bitcoin did fall 37% on March 12, 2020. And just one month later, Oil markets plunged 333% in the space of 24 hours, nearly 10x a greater drop, touching a low of MINUS $40 per barrel at one point. In December 2019, Goldman Sachs predicted the average oil price through 2020 would be $63 per barrel.

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