Crypto Community is Buzzing about Goldman Sachs News Dumping Bitcoin Price
According to Business Insider, Goldman Sachs has decided to drop its plan to start a trading desk for cryptocurrencies. The information has been released on Wednesday 5 producing an important drop in the crypto market.
The total cryptocurrency market value fell over 7% in just some minutes after the information was published. Most of the important virtual currencies are registering losses. Bitcoin (BTC) is down 4.32%, Ethereum (ETH) 9.93%, XRP 8.61% Bitcoin Cash (BCH) 11,31% and EOS 10.99%. In the top 10, Stellar (XLM) is the one that lost the less in the last 24 hours, registering a fall of 1.88%.
— CNBC's Fast Money (@CNBCFastMoney) September 5, 2018
The famous Wall Street bank was working in order to launch a new trading operation focused on different cryptocurrencies. However, they informed that they need to wait for the regulatory environment to be more clear and mature before trading virtual currencies.
Goldman Sachs gave an answer about the situation:
“In response to client interest in various digital products, we are exploring how best to serve them in the space. At this point, we have not reached a conclusion on the scope of our digital asset offering.”
Brian Kelly of BKCM said that the markets experienced such a drop because the bank represents the ‘institutional herd.’ In the last months, several recognized companies offered products for institutional investors to enter the market, and Goldman Sachs was one of them.
It is important to mention that the U.S. Securities and Exchange Commission considers some ICO coins as securities. That means that they would have to be compliant with federal securities laws.
Additionally, some weeks ago, several bitcoin exchange traded funds (ETFs) were rejected.
The future of the crypto market depends on institutions placing their funds in the market. If there is no infrastructure and clear regulations, institutions would not be able to invest in cryptocurrencies.
Some countries such as Malta or Japan are working on clear and flexible rules for virtual currencies and the infrastructure around them.
At the moment of writing, Bitcoin is being traded close to $7050 dollars.