Goldman Sachs Drops Plan to Open Bitcoin Trading Desk, for Now

Fredrick Soto
September 8, 2018

According to reports from CNBC and other media outlets, financial giant Goldman Sachs has apparently dropped its near-term plans to launch a cryptocurrency trading desk for its clients. 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. How can fake news potentially affect crypto markets?

But 2018 has been a rocky year for the world cryptocurrency with bitcoin prices sliding from record levels, pressured in part by regulators' increased scrutiny of initial coin offerings (ICOs) and cryptocurrency exchanges.

Things started getting better for the market when large institutions like Goldman Sachs started showing signs of embracing the digital assets, and that somehow breathed some life into the market and kept it on a high over the last few weeks.

"Bitcoin is coiling tighter and tighter, making everyone wonder what to expect, but I feel like correction is incoming (if not a reversal)". Institutional money is considered by many as a trigger for next bull run in cryptos and this news meant there would be no much reason for traders to stay in the market in the short term.

Ethereum, the second biggest alternative cryptocurrency to Bitcoin by market value, slumped from $283.76 to $228.52 in the last two days, losing 19.48%. The currency's market capitalization at the starting of the day was $127 Billion - but it dropped to a low of $120 Billion post that.

More people than ever used cryptocurrencies in 2018, and at BitStarz, Bitcoin, Ethereum, Dogecoin, Bitcoin Cash and Litecoin wagering went through the roof! This is despite the optimism they showed earlier in the year when they became the first Wall Street firm to clear Bitcoin futures.

The expectation of adoption by Wall Street has been a major theme for the cryptocurrency market for the a year ago, so any kind of updates on that can certainly move the prices. "Even if it's incorrect, it must be enough to cause a minor selloff like this in cryptocurrencies".

At the same time, enthusiasts drawn to Bitcoin's original promise of anonymity and freedom from government control were also dealt a blow on Tuesday when veteran Erik Voorhees's trading platform ShapeShift AG said it will begin asking users for personal information.

The quickly soaring volume of both Bitcoin and Tether (USDT) shows the manner and tendency of investors in Crypto market to tie their investments to the value of the US dollar in order to shun short-term drops.

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