Coming every Sunday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.
Top Stories This Week
Goldman Sachs butts heads with Bloomberg over Bitcoin
One of the world’s biggest investment banks caused a stink this week when it declared cryptocurrencies are not an asset class. In a leaked PowerPoint presentation, Goldman Sachs warned Bitcoin doesn’t provide diversification benefits, dampen volatility in a portfolio or show evidence of hedging inflation. One damning line read: “We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients.” Goldman’s view is directly at odds with Michael Bloomberg, whose financial reform plan unequivocally called BTC an asset class. As you’d expect, the crypto community reacted furiously. D-TAP Capital founder Dan Tapeiro argued Goldman Sachs was simply worried about protecting revenues, as it doesn’t make fees when a client buys BTC. Tyler Winklevoss also criticized the quality of Goldman’s research, writing: “Crypto used to be where you ended up when you couldn’t make it on Wall Street […] Today, Wall Street is where you end up when you can’t make it in crypto.”
$10,000 bull trap? Why Bitcoin price is now likely to pull back
Bitcoin grew in value by nearly 25% in the month of May — and now, it’s on track for a bullish monthly candle close. But wait! It might be a little too early for long-term hodlers to get excited. Cointelegraph’s Keith Wareing believes a pullback in BTC’s price is “somewhat inevitable” after such a big increase over the last eight weeks. A new downward channel has emerged on the charts that puts $9,700 as resistance, $8,700 as the midpoint level and $7,400 as support. However, he expects any dip would be short-lived “due to the increased momentum” across other indicators. According to Michaël van de Poppe, BTC needs to hold above $9,300 in a bullish scenario — and as long as that level remains support, further upward activity should be expected. There have been other interesting developments this week. Grayscale Investments is now buying 1.5 times the amount of Bitcoin being mined — adding 18,910 BTC to its crypto fund even though just 12,337 BTC has entered circulation. “There isn’t enough new supply to go around, even for just one guy,” commented Binance CEO Changpeng Zhao.
Libra will allow Facebook to spike ad prices, Zuckerberg says
We’re starting to get a few more juicy details about what Libra will look like — and how Facebook’s controversial stablecoin will make money. Mark Zuckerberg, the social network’s CEO, believes the digital currency will cause ad prices to soar. During an annual shareholder meeting, he said Libra means…