On January 30, Goldman Sachs said in a report that the recent correction in the cryptocurrency market indicates that its trend to integrate into the mainstream market may be a “double-edged sword.” The total market capitalization of cryptocurrencies has fallen by about 40% since November.
This round of decline is mainly driven by macroeconomic factors. The adoption of mainstream investment institutions can increase its valuation, but it is also increasing its correlation with traditional financial market variables, which further reduces the diversification of holding digital assets. Advantage.
Goldman Sachs also noted that the sharp drop in token prices has led to a drop in liquidation and borrowing on decentralized finance (DeFi) platforms, much like the traditional financial system. But developments in the metaverse realm may provide a “long-term boost” for certain digital assets over time, but they will not be “immune from macroeconomic forces” such as central bank monetary tightening.