Bitcoin (BTC) has been repeatedly touted as a good store of value like gold, considering the cryptocurrency shares similar qualities—like limited supply—with the precious metal. This narrative has been defended by several respected representatives of traditional financial institutions, like Skybridge Capital’s Anthony Scaramucci.
At the same time, many others have refuted this claim, and the latest to do so is Goldman Sachs’ Head of Investment-Strategy group, Sharmin Mossavar-Rahmani.
In a recent interview with Bloomberg, the executive noted that Bitcoin’s immense volatility was its most significant obstacle to achieving store of value status. Mossavar-Rahmani stated that “just because everybody piles into an idea and talks it up doesn’t mean it’s a store of value.”
The Head of Investment went as far as comparing Bitcoin’s price fluctuations with that of the recent price performance of GameStop (GME) stock. She added that “something with a long-term volatility of 80% can’t be considered a medium of exchange.”
Worth mentioning is that Mossavar-Rahmani is also bearish on gold. In 2020, she advised that large investors should avoid holding gold except they had “a very strong view that the US dollar is going to get debased. We don’t have that view.”
Mossavar-Rahmani is now the third Goldman Sachs executive to speak against Bitcoin’s volatility, alongside the senior Chairman, Lloyd Blankfein, and the Head of Commodities Research, Jeff Curie.
Key BTC Levels to Watch — February 4
Over the past few hours, Bitcoin has retested the $37,827 resistance—as projected—but failed to close a candle above the line. The cryptocurrency got met with fresh supply at the resistance level, which sent it on a mild retrace to the ascending trendline ($36,500).
That said, we expect a retest of the $37,827 resistance in the coming hours, which could create the next sustained path for the cryptocurrency.
Meanwhile, our key resistance levels are at $37,827, $39,800, and $41,000. While our key support levels are at $36,000, $35,000 and $34,100.
Total Market Capitalization: $1.16 trillion
Bitcoin Market Capitalization: $699 billion
Bitcoin Dominance: 60%
Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
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