Maybe Goldman Sachs Isn't So Keen On Crypto, After All

Gladys Abbott
September 8, 2018

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.

The sharp sell-off that gripped cryptocurrency markets on Wednesday has extended into a second day, with major digital assets across the spectrum continuing to fall during trading on Thursday.

US-based bank Goldman Sachs is reported to have shelved plans to establish a cryptocurrency trading desk at its offices, according to Business Insider.

Taking the stage at the TechCrunch Disrupt Conference in San Francisco, Chavez looked to clear the controversy surrounding recent news that Goldman Sachs is postponing its launch of a Bitcoin trading desk.

Despite being down almost 85% from January highs, the short interest on ETH is now at an all-time high, indicating that investors are betting that there are more losses to come.

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Regardless of the reasons behind the crash in bitcoin's price, cryptocurrency fans will probably be relieved to know that Goldman Sachs still has an interest in digital assets.

"The move positions Goldman Sachs to become the first large Wall Street firm to make markets in cryptocurrencies, whose wild price swings and surging values have captured the public's imagination but given pause to established institutions", Bloomberg noted. One crypto writer, Tanya Abrosimova, said that the drop could be attributed to attempts to regulate the global crypto market, which may have spooked investors.

Some are claiming that the news is likely to keep bitcoin and cryptocurrency down for good - that this was the highlight of digital money's journey towards legitimacy, and the barricades will be too much to handle without Goldman Sachs' help.

Goldman Sachs, however, isn't saying anything definitive for now. "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. It has held relatively steady since then, but has now fallen more than $1,000 in value in just two trading sessions.

Cryptocurrency markets seemed to respond negatively to the news.

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