Bitcoin extends slump on Goldman Sachs report

Share

In the intervening months, bitcoin's price has cratered, and Business Insider's Dakin Campbell and Frank Chaparro now report that the investment bank is shelving its crypto-trading plans, citing people familiar with the matter. In May, the NYTimes reported Goldman Sachs was waiting for regulatory approval while figuring out how to deal with holding cryptocurrencies in a safe way.

Apparently, the bank has had some misgivings about the regulatory situation in regard to cryptocurrencies. According to CoinMarketCap, the current Bitcoin price makes up $6 455,14.

"When we talked about exploring digital assets that it was going to be exploration that would be evolving over time", he said.

Bitcoin's drop in price can not be exclusively blamed on investor paranoia.

However last night's fall was created, it is a further blow to any thoughts of a concerted recovery in the crypto markets, at least for now.

Rumors of Goldman launching a crypto trading desk first began to circulate in October past year, when it was revealed that the bank was exploring the idea.

Other cryptocurrencies have followed always Bitcoin's lead and the drop in price has put several of them in hot water.

In December of a year ago, Goldman Sachs announced its plans to set up a cryptocurrency trading desk by 2018 and become the first Wall Street giant to get involved with the cryptocurrency-related trading activity.

The Bloomberg Galaxy Crypto Index, a gauge of the largest digital assets, traded near its lowest level since November 2017 as rival coins Ripple, Ether and Litecoin also fell.

The dramatic hour slowed down the entire crypto market capital, and it appears to have made its place among the downward trend on the charts recently. It was among the first Wall Street firms to clear Bitcoin futures offered by Cboe Global Markets Inc. and CME Group Inc.

However, even during the downward trend, bitcoin manages to hold the upper hand over other competing cryptocurrencies in the market that are also suffering the dip of the total market cap.

The statistics coming from these reports signal that although the markets are sitting near their year-to-date lows, and sentiment from investors is overwhelmingly negative, the crypto markets are still in their infancy.

Goldman Sachs considered the strong resistance from the SEC on Bitcoin exchange-traded funds (ETFs) proposals as a hindrance to the healthy implementation of its plans.

Share