Goldman Sachs CEO backs Bitcoin as potential store of value.
The CEO’s comments fuels bullish crypto sentiment.
Fed rate cut delay likely, impacting Bitcoin’s price.
David Solomon, the CEO of Goldman Sachs, supported Bitcoin (BTC) and its status as a store of value. In a CNBC interview, Solomon stated, “Bitcoin could have a use case as a store of value,” essentially putting to rest the debate about BTC’s role as a hedge against inflation.
Solomon also discussed the Olympics, the upcoming U.S. Presidential elections, Fed rate cuts, cryptocurrencies, and more in the six-minute video. While the financier refrained from making a definitive statement on cryptocurrencies or Fed rate cuts, his comments fueled bullish sentiment in the digital asset sector.
Goldman Sachs CEO on CNBC this morning at the Olympics: “Bitcoin could have a use case as a store of value.”
— Ryan Rasmussen (@RasterlyRock) July 30, 2024
In a post on X (formerly Twitter), financial researcher Danny Marques noted that Solomon avoided making an absolute statement because “the global reaction to Goldman positioning as ‘we like and are full on Bitcoin’ would trigger a supply shock to BTC unlike any other to ALL wealth fund managers.”
Additionally, Solomon said he does not see the Federal Reserve introducing rate cuts at the July 31st meeting. However, he acknowledged the high inflationary pressure, suggesting a greater likelihood of “one or two” rate cuts “in the fall.”
Fed rate cuts directly and positively impact Bitcoin’s price. When the central bank cuts rates, inflation fears rise, and investors often turn to BTC as a perceived hedge against inflation. Rate cuts also imply a weakening U.S. dollar, which further leads to capital influx into Bitcoin.As reported in May, Goldman Sachs and JPMorgan initially expected Fed rate cuts in July. However, predictions have seemingly shifted, and rate cuts may now occur in the fall.
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