Executive Summary
May 2, 2018 marks a watershed moment for Bitcoin. Goldman Sachs, the storied Wall Street investment bank, has confirmed plans to open a Bitcoin trading operation — making it the first major bulge-bracket bank to do so. The announcement comes as Bitcoin trades at approximately $9,235, recovering from a brutal first quarter that saw $119 billion wiped from its market capitalization. Meanwhile, Reddit co-founder Alexis Ohanian has predicted Bitcoin will reclaim $20,000 by year-end, while GP Bullhound warns of a looming 90 percent correction that could trigger a “mass market wipe out.”
The Numbers Unpacked
Bitcoin’s price action heading into May 2 tells a story of resilience amid skepticism. After hitting an all-time high near $20,000 in December 2017, BTC suffered its worst quarterly performance ever in Q1 2018. The crash brought prices below $7,000 before a steady recovery through April pushed BTC back above $9,000 — a roughly 30 percent monthly gain.
On May 2 specifically, CoinMarketCap data shows Bitcoin trading at $9,235.92 with a 24-hour gain of 1.61 percent and a 7-day return of 3.22 percent. Market capitalization stands at approximately $157.1 billion. Ethereum sits at $687.15, up 2.07 percent over 24 hours, while XRP trades at $0.86 and Bitcoin Cash at $1,459.
Total crypto market capitalization hovers around $400 billion — dramatically down from the January peak above $800 billion but showing signs of stabilization as institutional players begin making concrete moves into the space.
Historical Context
Goldman Sachs’ decision did not happen in a vacuum. The bank had been signaling interest in cryptocurrency markets for months, having already operated a cryptocurrency trading desk clearing CBOE and CME Bitcoin futures contracts since late 2017. The firm had also invested in crypto custodian BitGo and had been openly discussing cryptocurrency with clients.
The significance of a Tier 1 bank entering Bitcoin trading cannot be overstated. Throughout 2017 and early 2018, major financial institutions — JPMorgan, Bank of America, Citigroup — had uniformly distanced themselves from cryptocurrency. JPMorgan CEO Jamie Dimon famously called Bitcoin a “fraud” in September 2017, though he later expressed regret for those comments. Goldman’s move breaks that wall of institutional silence.
The broader crypto market context is equally important. The first Bitcoin futures contracts launched on CBOE in December 2017 and CME followed shortly after, giving institutional investors their first regulated exposure to Bitcoin. Goldman’s direct trading operation represents the next logical step: actual custody and market-making in Bitcoin itself, not just derivative products.
Expert Consensus
The expert community is sharply divided on Bitcoin’s trajectory from this point. Alexis Ohanian, Reddit co-founder and now a venture capitalist at Initialized Capital with investments in Coinbase, told Fortune he expects Bitcoin to more than double to $20,000 by year-end. He is even more bullish on Ethereum, predicting it will reach $1,500 — later clarifying he misspoke and meant $1,500, not the originally reported $15,000.
“I’m most bullish about Ethereum simply because people are actually building on it,” Ohanian explained, noting that developers find Ethereum’s blockchain more flexible for building applications than Bitcoin’s.
On the bearish side, GP Bullhound’s “Token Frenzy: The Fuel of the Blockchain” report predicts a devastating 90 percent correction within 12 months. Director Sebastian Markowsky argues that institutional money will initially drive prices higher, attracting retail investors at inflated levels before a sharp collapse triggers panic selling.
Charlie Hayter, CEO of CryptoCompare, strikes a more measured tone, identifying four factors shaping 2018: regulation, increasing market interconnectedness, a wider variety of instruments, and institutional capital inflows. “The industry has resiliency in terms of its infrastructure but is still subject to the whims of behavioral sentiment,” Hayter noted.
Forward Outlook
Goldman Sachs’ entry into Bitcoin trading could catalyze a fundamental shift in how traditional finance views cryptocurrency. If the experiment succeeds, other major banks are likely to follow — creating a bridge between the $90 trillion traditional equity markets and the still-nascent crypto ecosystem.
For Bitcoin, the immediate question is whether the Goldman news can sustain the recovery momentum built through April. A move back toward $10,000 would signal renewed confidence, while a failure to hold $9,000 support would validate the bearish case put forward by GP Bullhound and skeptics like Nouriel Roubini, who has predicted Bitcoin will crash to zero.
The longer-term picture is more nuanced. Markowsky himself acknowledges that “once this crypto-winter passes, the growth dynamics for the precious few survivors will be unprecedented.” Ohanian’s venture investments suggest he’s placing capital behind that thesis. And Goldman Sachs, with its $40 billion in annual revenue and decades of market-making expertise, clearly sees something worth betting on.
For investors watching from the sidelines, the signal is clear: crypto is no longer just a retail phenomenon. The institutional cavalry has begun arriving. Whether that proves to be a lifeline or an exit signal remains the defining question of 2018.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
goldman announcing BTC trading in 2018 and then ghosting for 3 years is the most wall street thing ever. they literally pumped the news and dumped the product
ohanian saying 20k by year end while GP bullhound called for a 90 percent crash. one was directionally right, the other was right about everything else lol
fed_minutes_rat_ GP Bullhound got the direction right at least. 84 percent drawdown when they called for 90. close enough for a research note
Goldman opening a BTC desk at $9,235 in May 2018 was peak bull market retail interest. they timed the top of the recovery rally perfectly as usual
Goldman confirming a BTC desk in 2018 then taking 6 years to actually offer crypto to clients. the announce first ship later strategy
bulge_bracket_ announced 2018, launched 2024. 6 years to open a trading desk that their competitors had running in months
GP Bullhound calling for 90% correction while Ohanian called for $20K by year end. both wrong, but the 90% crowd was closer to the actual bottom
goldman entering BTC trading in 2018 was the original institutional adoption catalyst. took them another 6 years to actually do it properly
tradfi watch goldman confirming BTC trading in 2018 then taking 6 years to launch their crypto desk properly is peak wall street. announce first, ship never
GP Bullhound calling for 90% correction while BTC was at $9200. turned out they werent entirely wrong, we dropped to $3200 by december
Boris M. GP Bullhound got the direction right but the magnitude wrong. 90% correction from $20K would be $2K. we bottomed at $3,200 which was 84%. close enough for a research note i guess
peak wall street is right. goldman announced BTC trading in 2018 and their actual crypto offerings didnt materialize until what, 2021? classic move fast and break promises
Nils E. announce in 2018, actually offer in 2024. 6 years to launch a trading desk. wall street doesnt move fast when theres no fee revenue on the table
Nils E. 2018 announce, 2021 quietly launch, 2024 actually offer it to clients. goldman moves at the speed of a glacier unless theres fee revenue involved
Frederik B. 2018 announce 2021 quietly launch 2024 actually offer. goldman moves slower than ethereum hard forks. they just wanted the PR bump
goldman_announce_ 6 years from announcement to actual product is generous. they launched their crypto custody desk and shut it down within 18 months
fed_quant_ they shut down the custody desk in 18 months but somehow the trading desk announcement pumped BTC 5% on the day. wall street headline manipulation at its finest
GP bullhound gets credit for the call but ohanian’s $20k prediction was dead wrong for 2018. took until 2020 for that
Sven D. ohanian said 20k by year end 2018. btc closed 2018 at 3700. thats not a prediction thats a wish
longbond_ ohanian said 20k by end of 2018 and BTC closed at 3700. thats not a prediction thats comedy
boris is right, they called the direction but missed the magnitude. $3.2K bottom was devastating enough without needing to hit $2K
Ohanian called 20k by end of 2018. BTC closed at 3700. GP Bullhound called 90 percent crash and got 84. one of these analysts actually did their homework
Goldman entering BTC at 9200 while GP Bullhound was calling for 90% correction. Wall Street bought the dip while analysts panicked
Dario C. goldman bought the narrative while GP Bullhound was literally telling clients to short. same wall street different desks making opposite calls
Ohanian calling 20k EOY and GP Bullhound calling 90% crash. both were half right which is basically being wrong
cynical_bull Ohanian half right is generous. BTC ended 2018 at 3700. calling 20K wasnt half right it was completely wrong. GP Bullhounds 90% thesis was closer to reality
Ohanian calling 20K EOY 2018 and price went to 3200. GP Bullhound called 90% crash and got closer. both were guessing and both got paid regardless