Goldman Sachs has warned that investors should not expect rising cryptocurrency adoption to translate to riches for their portfolios, as analysts at the investment bank have speculated prices may not rise as adoption grows.

According to a note sent to clients, reported on by Bloomberg, Goldman Sachs analysts Zach Pandl and Isabella Rosenberg wrote that cryptocurrencies like bitcoin have been seeing their mainstream appeal grow over the last few years, which has to some extent seen their correlation with other macro assets grow.

The price of BTC, they added, appears to be positively correlated with proxies for consumer-price risk like crude oil prices and breakeven inflation, as well as with technology stocks. These are negatively correlated with real interest rates and the U.S. dollar.

The cryptocurrency market’s recent sell-off came at the same time as a wider sell-off in equities markets that saw the Nasdaq lose around 14% of its value in 30 days. Bitcoin dropped around 21% over the same period. Goldman’s strategists wrote:

While it can raise valuations, it will also likely raise correlations with other financial market variables, reducing the diversification benefit of holding the asset class.

The U.S. dollar saw its value rise recently as the Federal Reserve and other central banks moved to tighten monetary policy. The Fed’s hawkish stance has affected both cryptoassets and technology stocks.

The strategists estimated that “further development of blockchain technology, including applications in the metaverse, may provide a secular tailwind to valuations for certain digital assets, but noted these assets won’t “be immune to macroeconomic forces, including central bank monetary tightening.”

As CryptoGlobe reported, Goldman Sachs analysts have recently estimated BTC’s price could rise to hit $100,000 in the future if it takes further market share away from gold in the so-called “store of value” market.

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