Is Goldman Sachs out of the cryptocurrency trading desk idea?

Adjust Comment Print

Along with the drop in Bitcoin (BTC), Ethereum (ETH) has reached a new low for 2018, after shooting up to about $1,400 in January.

Unfortunately, investors long on Bitcoin were, on Wednesday, shocked when Bitcoin prices sharply dropped by over Dollars 300 in a matter of minutes.

"Specifically, Goldman Sachs is invested in Circle, which is essentially a competitor to Coinbase".

Goldman Sachs is reportedly abandoning plans to launch a cryptocurrency trading desk.

"In response to client interest in various digital products, we are exploring how best to serve them in the space", Goldman Sachs spokesman Michael DuVally told Barron's.

"Their name carries weight across the globe", said Ryan Rabaglia, head trader at digital asset brokerage OSL in Hong Kong, referring to Goldman Sachs. It will also include a financial management function with a seamless process where buying, storing, exchanging and trading on both fiat and cryptos is available.

China's August Trade Surplus With US Hits Record $31 Billion
But 2018 imports from China through July were up almost 9% over the same period of 2017, according to US Census Bureau data. China said it is ready to impose retaliatory tariffs on $60bn worth of United States goods if that happens.

Within Bitcoin specifically, the Bitcoin ETF will act as a fund that owns the underlying asset of Bitcoin and will be able to divide the ownership of that Bitcoin into shares which in turn can be bought by investors and institutions. It is not clear how long the decline will go on or how far it will go.

Ethereum's nudiustertian drop has obliterated most of the profits it earned in its share of the crypto market as a result of Bitcoin's 2018 fall. Institutional and wealthy investors are likely looking for regulation support and legal protections before pouring money in. "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.

Cryptocurrency markets seemed to respond negatively to the news.

Rumors of Goldman setting up a crypto trading desk to make markets in digital currencies, such as bitcoin, have been circulating since December 2017. According to blockchain investor and advisor Oliver Isaacs, "The increased price stability of Bitcoin over the last couple of days has not been witnessed for a while and I think it should be viewed as a positive sign with more gains to come, especially in the coming months". This chart shows another drop forthcoming, even after a correction upward of the drop from the Goldman news.

The coin saw another sharp drop in the final hours of the session, which led to a close of $6,792.83, significantly lower than its opening price of $7,361.46.

A recent market study among 1,202 adults, conducted by the research firm YouGov, revealed that nearly half of the American millennials are ready to ditch the USA dollar and use cryptocurrency instead.

Comments