Key Insights:
Bitcoin ownership enters a new era with top banker and investment manager Goldman Sachs disclosing $1.5 billion ownership.
The top asset manager owns Bitcoin via BlackRock and Fidelity ETFs.
Bitcoin has lately seen increased institutional adoption with government and institutions buying alike.
We expect the secondary buying caused by Goldman Sachs's competitors to take BTC above $100k on a sustained basis.
The creation of the US National Digital Assets Stockpile would push BTC even further in H2 of 2025.
Goldman Sachs has finally admitted that it has bought over $1.5 billion in Bitcoin ETFs via BlackRock and Fidelity Bitcoin ETFs. It also holds roughly $450 million in Ethereum.
Goldman Sachs is one of the most conservative but highly accomplished wealth managers with a focus mostly on equities, derivatives, and bonds. It also had launched a venture capital arm but allocated only $1 billion to it as compared to a net AUM of $2.81 trillion.
Previously, it had entered a collaboration with USDC issuer Circle back in 2015 and called Bitcoin a technology that could shape the future.
Goldman Sachs Invests in Circle in 2015
Bloomberg
As shown by Michael Saylor in a presentation, Bitcoin remains the highest performing asset, better than stocks and bonds to grow wealth. Last year, we saw Bitcoin outperforming all major asset classes.
This not only tempts wealth management companies like Goldman Sachs and MicroStrategy (formerly a software company) but also Bitcoin miners like Riot Platforms and tech companies like Metaplanet.
At present, three governments across the world own a considerable amount of Bitcoins. The largest among all is the US Government which owns roughly 140k Bitcoins after the last $6.5 billion sale.
The oldest government to buy Bitcoin, i.e., El Salvador has managed to find a middle way to save its Bitcoin despite signing an IMF deal. Its recent purchases, shed all doubt on the country's Bitcoin acquisition policy.
The last pro-Bitcoin and Bitcoin-owning government is Bhutan, a tiny Himalayan landlocked country that owns roughly 12,000 BTC.
Recent disclosures are bound to create some action in the markets. Traditionally, Goldman Sachs is seen as one of the leaders in the global wealth management space. As soon as the news spreads, we can expect several more institutional buyers to join in with more Bitcoin purchases.
A downside of this development would be the feared centralization of Bitcoin, which goes against it's ethos as mentioned by Satoshi Nakamoto in his whitepaper. However, fund houses are the most stable hands in any sector and do not make decisions based on FOMO or FUD.
This is the exact opposite of retail markets where FOMO and FUD act as the makers and breakers. The best example of this aspect could be seen in the case of memecoins. After reaching a high of $75 within 24 hours of its launch, the Official Trump memecoin saw its value dive to $15 within three weeks of its launch.
Bitcoin has had really a tough time crossing $100k. Thrice it had ventured out to reach $107k, $103k, and $106k levels, in between 7 December 2024 and 10 Feb 2025. However, during all attempts, it had to face massive selling on the upside, first because of post-US-election profit booking, second time due to liquidity crunch, and third time due to short-time owners selling BTC.
Now that Bitcoin has established a massive support base between $95k to $96k, the price is unlikely to fall below these levels.
As Bitcoin consolidates at current levels, its price is likely to give a window of exit for short-term investors. Once they exit, markets are expected to take Bitcoin beyond $100k. We have observed the same phenomena multiple times i.e., the first time during Bitcoin's growth from $58k to $69k, and the last time during its price recovery after falling from $107k ATH.
Bitcoin's Price Trend in the Last 1 Year
CoinMarketCap
This time, a move beyond $100k should be sustained because of BTC purchases by highly conservative players like Goldman Sachs. This is supported by the resumption of Bitcoin purchases by MicroStrategy and other corporate players like Metaplanet.
By mid-2025 Bitcoin is expected to reach around $150k, which could see a further boost if the US National Digital Asset Stockpile takes shape soon.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.