Goldman Sachs is not optimistic for the near-term fate of cryptocurrency. In its mid-year economic report, the bank's investment management group highlighted "cryptocurrency mania" as one of six factors creating an unsteady undertow affecting markets for the remainder of 2018.
"We expect further declines in the future given our view that these cryptocurrencies do not fulfill any of the three traditional roles of a currency," Sharmin Mossavar-Rahmani, Goldman's chief investment officer of the private wealth management group, said in the report published Friday.
The Wall Street giant reiterated its January call published in the full-year outlook that bitcoin's meteoric rise to $20,000 "dwarfed" mania seen during the dot-com bubble. The cryptocurrency has lost roughly 60 percent of its value since that high in December, and was trading near $7,470 Friday, according to industry site CoinDesk.