Goldman Says Crypto Mainstream Acceptance May Not Boost Prices

Investors should be skeptical of the narrative that rising adoption of cryptocurrencies must translate into higher prices, according to Goldman Sachs Group Inc.

As tokens like Bitcoin gained wider mainstream appeal in the past couple of years, their correlation with other macro assets has increased to where crypto is now at the center of recent rotations across asset classes, Goldman strategists Zach Pandl and Isabella Rosenberg wrote in a note published Thursday. That flies in the face of cryptocurrencies as an ideal tool for diversification.