Bitcoin Falls Off a Cliff Again as Cryptocurrency Slump Deepens


Amid spiking interest in the cryptocurrencies, and plans for contracts to go live on exchanges, Goldman Sachs aiming to capitalize on the trend, announced a strategy to clear bitcoin futures for some clients, as reported by Reuters. With the U.S. Securities and Exchange Commission (SEC) still pushing back on proposals for bitcoin exchange-traded funds, for instance, U.S. governmental authorities have not yet embraced cryptocurrencies to the extent many had expected by this time.

But it was likely exacerbated by a separate Business Insider report which said that Goldman Sachs has shelved its plans to launch a Bitcoin trading desk.

Apparently, the bank has had some misgivings about the regulatory situation in regard to cryptocurrencies.

Business Insider reported: "Goldman has moved plans to open a desk for trading cryptocurrencies further down a list of priorities for how it can participate in cryptocurrency markets, according to people familiar with the matter". "We're listening to our clients and trying to help our clients as they're exploring those things too".

Goldman Sachs giveth, and Goldman Sachs taketh away.

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FILE - White House press secretary Sarah Sanders speaks during a press briefing at the White House, May 7, 2018. In an official written statement, the White House also attacked the opinion column and criticized its author.

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. Following news of a delay, Goldman Sachs CFO Martin Chavez is now saying that the firm never had a timeline for it in the first place.

Most of the important virtual currencies are registering losses. "They were not a part of the ecosystem yet, but to the extent that they represent the institutional herd, this is a negative", Kelly added.

The action began just after midnight (GMT+1), and the following hour of trading saw the BTC price fall around $500 on BitFinex, before settling again at at just above the $6,400 mark.

The price of ethereum has plunged almost 20 per cent in 24 hours and is now down 1.56 per cent on the day to around $229.08, while litecoin and ripple both shed more than 7 per cent of their value in recent days.

Cryptocurrency markets seemed to respond negatively to the news. According to CoinMarketCap, the current Bitcoin price makes up $6 455,14.