Cryptocurrencies continue to tumble on Goldman reports

Cryptocurrencies continue to tumble on Goldman reports

Cryptocurrencies continue to tumble on Goldman reports

Investment bank Goldman Sachs is ditching its plans to open a cryptocurrency trading desk, reports detail.

Earlier this year, Goldman Sachs was very enthusiastic about entering the cryptocurrency market. As a result, any bank looking to facilitate those trades has to figure out how to safeguard those assets in a way that keeps regulators happy. Bitcoin's price at the time of this writing is $7,013 and the currency is testing the $7,000 support mark.

Some crypto experts believe there to be three potential roadblocks that a Bitcoin ETF application will need to overcome to receive the approval of the commission.

As reported by CoinDesk in October 2017, Goldman Sachs has been considering launching a new trading operation for the past one year which would focus on bitcoin and other digital currencies.

Although it is true that Goldman Sachs had to unfortunately choose to postpone their plans for releasing a cryptocurrency trading desk, their interest in cryptocurrency has not waned.

For instance, Bloomberg reported that Goldman Sachs had moved the trading of cryptocurrencies down in their priority list. A higher number indicates greater price volatility with 50 describing an average day. In a madcap morning, Bitcoin fell by a total of 6%, while Ethereum, Litecoin and Ripple all racked up double figures - ETH lost 12% in a single morning.

Several traders in the crypto industry have hoped the season of tokens and small market cap Cryptos to come in September putting into consideration that tokens have faced huge losses against bull Cryptos for eight months consecutively. But for now, Goldman is concentrating on other projects such as a custody product for crypto, which means that the bank holds cryptocurrency and, potentially, keeps track of price changes on behalf of large fund clients. In addition, the firm's clients demanded them to clear the Bitcoin futures contracts that are offered by exchanges and Goldman Sachs has been working towards it since May.

The statistics coming from these reports signal that although the markets are sitting near their year-to-date lows, and sentiment from investors is overwhelmingly negative, the crypto markets are still in their infancy. Bitcoin, for example, just repeated the same pathetic behavior it exhibited back in July, only this time on a considerably weaker scale. "Even if it's incorrect, it must be enough to cause a minor selloff like this in cryptocurrencies".

Related news