Bitcoin falls off another cliff as cryptocurrency slump deepens

Ivan Schwartz
September 8, 2018

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. It also said Goldman was for now focusing on projects such as a custody product for cryptocurrencies-something that Chavez discussed Thursday, noting that a safe custody solution was a prerequisite for further cryptocurrency-related services.

The latest round of selling comes after Business Insider reports that Goldman Sachs is halting plans to build a crypto desk in part because of a tough and uncertain regulatory landscape.

Rival cryptocurrencies ethereum and ripple meanwhile slumped by about 20 per cent and 10 per cent respectively since the Business Insider said Goldman suspended plans for a bitcoin-linked trading exchange in favour of other digital currency efforts. Understanding the gravity of the situation, the CFO of Goldman Sachs has come out to clarify the company's stance on cryptocurrencies. Instead, the bank will reportedly focus on a custody product for digital currencies created to serve large, institutional clients.

"At this point, we have not reached a conclusion on the scope of our digital asset offering", Goldman Sachs spokesperson Michael DuVally told Reuters.

Goldman Sach has explained that they are now focused more on other digital-coin services, such as a custody product.

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Earlier this week, a report suggested Goldman Sachs was backing away from its plans to open a cryptocurrency trading desk, as it was rumored to have meant to do this summer.

Most of the important virtual currencies are registering losses. It would have allowed enterprises and institutional investors to enter the market. However, Brian Kelly, founder and CEO of crypto hedge fund BKCM, is more anxious about the long-term impact of Goldman Sachs' about-face.

Clearly, the market still respects Goldman Sachs outlook on the crypto market. It has held relatively steady since then, but has now fallen more than $1,000 in value in just two trading sessions.

The news of Goldman getting cold feet caused the cryptocurrency market to crash.

Overnight trading brings another sizeable fall in the value of Bitcoin, as it dips $500 in and hour.

Other reports by GizPress

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