Bitcoin slipped from $7000, after a report was issued that Goldman Sachs is abandoning its plan to open a trading desk for cryptocurrencies. The world’s most successful digital currency fell about 10% to a low of $6,866.06, according to a report from Coindesk. The Altcoins were also pulled down along with Bitcoin. Ether fell by about 13%, XRP by 6% and Bitcoin by 12% in just 24 hours. The prices began slipping when Business Insider issued a report saying that Goldman Sachs was withdrawing its plans to launch a cryptocurrency trading platform.
Goldman Sachs was founded in New York in 1869 by Marcus Goldman. The Goldman Sachs group is an American multinational investment Bank and financial services company. The headquarters are located in New York City. The group offers services in investment management, securities, asset management, prime brokerage and securities underwriting.
Back in October 2017, Wall Street said that it was looking to launch a new trading operation focused on Bitcoin and Altcoins.
Unfortunately for the cryptocurrency market, the U.S Securities and Exchange Commission once again rejected the proposal for Bitcoin Exchange Traded Fund (ETF) due to continued worry about fraud and manipulation in the market.
In the past two days, Bitcoin prices threatened to reach this year’s all time low of $5,887. Although cryptocurrencies are decentralized and independent of government interference, the market has proven to be deeply affected by institutional involvement.
Goldman Sachs, the firm at the top of the pack, proved this theory by initially announcing that the company would involve in the crypto-market, support its investors and the plans to build a crypto-desk. In fact, when the firm first announced their involvement, cryptocurrency market prices were driven up overnight. Now, when Goldman Sachs announced their plans to withdraw from the industry, the market suffered.
Despite the decentralized nature of cryptocurrencies, the market is still affected by decisions and plans of influential industry titans.
However, the important fact here is that Goldman Sachs hasn’t exactly forsaken the crypto-market; the firm has just pushed their plans for a crypto-desk further back on the list of their priorities.
Reportedly, the firm is concerned about the regulatory situation around cryptocurrencies. This back and forth analysis is quite normal for banks who usually test the waters a little longer before serious involvement. The same can be said about JP Morgan who have continually said that the cryptocurrency market is still too premature for serious involvement.
In the end, cryptocurrencies may still win over institutions due to the fact the currencies do in fact make their clients richer. If there’s one thing that the crypto-market and banks have in common, it’s their aim to make their clients wealthier, albeit through very different methods. One of the oldest tricks in the book is to create panic in the market in order to drive down the prices of a particular stock or currency. Do you think the major institutions are using this trick to abolish cryptocurrencies from their customers’ minds (or wallets)? Are the firms hoping for a sudden sell-off from major crypto-hodlers in the race to avoid huge losses?
If so, there is no reason to panic as a survey by SharePost showed that 72% of people are actually planning to use the plunge to buy into the crypto-market. The prices have already risen today by more than 2% and the price-dip is estimated to be a short one. So if anyone wants to buy Bitcoins at lower prices than usual, they better move fast!