Goldman Sachs CFO States Company ISN'T Ditching Bitcoin Trading Desk

Bitcoin falls off another cliff as cryptocurrency slump deepens

Maybe Goldman Sachs Isn't So Keen On Crypto, After All

For instance, the Bitcoin Foundation founder Charlie Schrem points out the existence of two-year cycles of bear and bull markets.

The crypto bulls defended the Bitcoin (BTC) after a sharp decline nearly by $1000 within past 24 hours, preventing it from a dropdown lower than $6K.

The news that Goldman Sachs won't become the first big Wall Street firm to make markets in cryptocurrencies has stirred the market producing temporary volatility, with Bitcoin losing up to as much as $500 in just a matter of minutes.

Business Insider on Wednesday reported that Goldman was pulling back on near-term plans to set up a crypto trading desk, while trading platform ShapeShift AG on Tuesday said that it would begin asking users for personal information - a policy that might drive away customers who value anonymity.

The value of Bitcoin has now fallen by about 65% since its peak on December 17, 2017, when it reached $19,783.21. When those plans were stymied by the Securities and Exchange Commission, the price plummeted to below $7,000.

In a recent turn of events, South Korea's national postal service, Korea Post (KP), has agreed on meeting with Goldman Sachs" executives in a bid to understand cryptocurrencies "strength and weaknesses'.

However, Goldman Sachs (gs) now claims the report was "fake news", on the basis that the trading desk plans never had a timeline.

While the decision may dispel users that prioritize anonymity, it may also help ShapeShift attract users that trade larger amounts of funds that tend to prefer regulated venues, said Vijay Ayyar, the Singapore-based head of business development at Luno, a cryptocurrency exchange. It reasonably suggests that the owners want to sell them and that drops the respective crypto price. Rumors of a trading desk emerged after they hired Justin Schmidt, a veteran crypto trader. The CFO said that Goldman is exploring non-deliverable forwards in cryptocurrency.

"From the perspective of custody, we don't yet see an institutional-grade custodial solution for bitcoin, we're interested in having that exist and it's a long road", he said.

This news top the market by sudden surprise and everyone started dumping coins across the board assuming that this move by Goldman would mean there would be no institutional money flowing into the crypto market.

Goldman is said to be working on custody services, where it will hold crypto assets securely for large clients wanting to invest in Bitcoin, Ethereum and other currencies.

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