Published: Sat, September 08, 2018
Finance | By Cynthia Curry

Goldman Sachs Has Dropped Plans for Crypto Trading Desk

Goldman Sachs Has Dropped Plans for Crypto Trading Desk

According to a report published by Business Insider, the Wall Street giant has chose to downgrade its plans over the cryptocurrency space's regulatory landscape. Martin Chavez made the statement on Thursday at a tech conference in San Francisco. That appears never to be the case anymore, and markets aren't taking the news well. The CFO said that Goldman is exploring non-deliverable forwards in cryptocurrency. In fact, he clarified saying that the wall street investment bank was working on a type of derivative for bitcoin because "clients want it".

As expected, the majority of the respondents heard of Bitcoin (BTC), in a ratio of 80%, while only 13% were aware of Ethereum (ETH).

Since then, Bitcoin prices have struggled, with little success, to go above the Dollars 11,000 area, and the selling pressure seems to be growing stronger by the day.

Ether may fall further to a support target of $155 as it faces increasing competition, market volatility and a maturing industry, according to a September 7 forecast from Bloomberg Intelligence commodity strategist Mike McGlone.

Goldman Sachs has moved its plan for a crypto trading desk lower down on its priority list, Business Insider reported, citing people familiar with the matter.

Amazon Becomes Second Company To Hit $1 Trillion After Apple
Amazon crossed the $2,000 threshold for the first time on August 30 after doubling its price in just 10 months. For added reference, the company's stock reached $1,000 in October of 2017, and broke $100 in October of 2009.

In December last year bitcoin was trading at $19,000, but by June this year bitcoin's price had fallen 6.2 per cent to $5,887. It seems protecting cryptocurrency is more straightforward than selling it. While there isn't proof of insider trading, there is a lot of speculation that an insider at Goldman Sachs took this position knowing what the news would do to the market.

Goldman Sachs is struggling to find a way to trade bitcoin. The crypto trading desk was to become part of Goldman's securities division, where the Wall Street giant trades everything from stocks to bonds to currencies. It remains to be seen how quickly the market levels out overall, and what happens next to Bitcoin Diamond.

What's Your Thought On This?, Let Us Know In the Comment section Below.

The presented content may include the personal opinion of the author and is subject to market condition.

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. The author or the publication does not hold any responsibility for your personal financial loss.

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