Goldman: Bitcoin, Altcoins to Become More Correlated With Traditional Financial-Market Variables

Goldman: Bitcoin, Altcoins to Become More Correlated With Traditional Financial-Market Variables
The recent pullback in the cryptocurrency market shows that mainstream adoption can be a “double-edged sword,” Goldman Sachs said in a report Thursday.Since November, the bank notes, the total crypto market cap has fallen around 40%. The slide is unique in that it was driven mainly by macroeconomic factors, that is developments that were outside digital markets, it said.Mainstream adoption can raise valuations but at the same time will also likely raise correlations with other financial market variables, which reduces the diversification benefits of holding digital assets, analysts led by Zach Pandl wrote in the note.The decline in bitcoin was…