Crypto Biz: Is Goldman Sachs the ultimate crypto contrarian?

One of the oldest contrarian investing wisdoms is to buy when there is blood in the streets. If it were that simple, crypto investors would be euphoric about all the buying opportunities right now. If you’re rattled by the bear market, which has been particularly brutal even by crypto standards, don’t worry. Cryptocurrency is still an untested asset class that operates in the shadow of regulators. I don’t blame you for not buying an asset class that has lost more than 70% this year.

With these caveats in mind, a quiet herd of smart investors believes that now is the best time to invest in Bitcoin (BTC), digital assets and crypto infrastructure companies — even after the monumental collapse of FTX. Although nothing is confirmed yet, US investment giant Goldman Sachs is also reporting that the price of crypto is flat after the year-long bear market.

This week’s Crypto Biz explores Goldman’s intrigue with crypto, a new cold wallet design from Ledger, Blockstream’s plunging valuation amid the bear market, and the latest news from Three Arrows Capital.

Goldman Sachs Reportedly Looking To Buy Crypto Companies After FTX Collapse

The embrace of crypto at Goldman Sachs appears to be growing, even during the bear market, as the US investment giant looks set to acquire struggling companies in the following the collapse of FTX. In an interview with Reuters, Goldman executive Mathew McDermott said crypto companies are “more reasonably priced” today than they were over a year ago and that calls for regulation of the industry will ultimately be a positive catalyst for adoption. Although FTX has become the “poster child” for crypto, and not in a good way, the technology underlying the industry “still works,” McDermott said.

The “Father of the iPod” Helps Ledger Create a New Cold Crypto Wallet

The collapse of centralized platforms has been a boon for Ledger, the hardware company known for providing cold storage crypto devices. After an influx of new orders for its Ledger Nano devices, the hardware company announced this week that he partnered with Tony Fadell, the inventor of the iPod Classic, to design his all-new wallet device. The new wallet, known as Ledger Stax, is said to be roughly the size of a credit card and features a large E Ink display, wireless charging and Bluetooth support. Remember: not your keys, not your Bitcoins.

Blockstream Raises Mining Funds at 70% Lower Company Valuation

Bitcoin infrastructure company Blockstream is would seek to raise new funding — but he also acknowledges that it won’t be easy during a bear market. The company led by Adam Back is ready to raise capital at a valuation below $1 billion, or 70% below its value Valuation of $3.2 billion as of August 2021. According to Back, the additional funding will be used to increase the company’s mining capacity. As Cointelegraph reported, Blockstream is working with Jack Dorsey’s block to develop a solar-powered Bitcoin mining facility in Texas.

3AC subpoenas issued as dispute grows over Terraform dump claims

The disgraced founders of Three Arrows Capital, Su Zhu and Kyle Davies, will be required to disclose financial information related to their failing hedge fund, a federal judge has ruled. The subpoenas approved to be delivered to the Founders require them to relinquish all “recorded information, including books, documents, records and papers” in their possession relating to the financial affairs of 3AC. Once valued at $10 billion, 3AC basically exploded following Terra Luna’s infamous death spiral earlier this year. Arrogant as they once were, Zhu and Davies were exposed to a series of gruesome dealings that ultimately bankrupted their business.

Before You Go: Bitcoin Hits $17,000 – Bull Trap or Incoming Relief Rally?

The price of Bitcoin has been quite stable over the past few weeks, even as the The FTX contagion continued to spread. The flagship digital asset surged above $17,000 earlier this week, prompting cautious optimism that the worst of the market downturn is over. In this week’s Market Report, I sat down with Marcel Pechman and Joe Hall to discuss whether BTC can expect a relief rally soon. I also interrupted the so-called “Santa Claus” rally, which many expect will take place later this month. You can watch the full replay below.

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