Bitcoin (BTC) Price Crashes As Goldman Ditches Trading Desk

Image courtesy of Ethereum World News archives

Image courtesy of Ethereum World News archives

Yesterday, CryptoGlobe reported the movement and dumping of some of the 111,000BTC stash - about $100m-worth of it, in fact - via the two exchanges, and attributed the dual price drops of mid-morning yesterday to a the sell-off.

"The bank was looking for some regulatory changes that have yet to materialize and would have protected banks like Goldman from some of the risks unique to trading cryptocurrencies", an unnamed source told the site. But it was likely exacerbated by a separate Business Insider report which said that Goldman Sachs has shelved its plans to launch a Bitcoin trading desk.

Cryptocurrency markets seemed to respond negatively to the news. The Business Insider report quoted unnamed sources as the basis of the information, giving evidence that the Wall Street firm had made a decision to do away with the previously hyped up trading desk. Instead, the bank will reportedly focus on a custody product for digital currencies created to serve large, institutional clients.

Eight months ago, just after the price of bitcoin hit its all-time high of more than $19,000, Bloomberg reported that Goldman Sachs was working to set up a cryptocurrency trading desk. The information has been released on Wednesday 5 producing an important drop in the crypto market. The company stated that it was backing away from its alleged cryptocurrency trading desk that it previously claimed would arrive during the summer, and it should come as no surprise that regulatory uncertainty is the reason why. Goldman Sachs will be proceeding to provide "crypto futures and forwards" for its clients.

"They were not a part of the ecosystem yet, but to the extent that they represent the institutional herd, this is a negative." .

In line with ethereum's latest fall, hundreds of alt-coins on the website coinmarketcap.com have posted declines of around 20% over the last 24 hours. "I think one of the wonderful things about being a Goldman Sachs is we do get written about a lot and I never thought I'd hear myself actually use this term, but I'd really have to describe that as fake news". Its low point is around $5800 for the year; will we see that in September?

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