Bitcoin Falls Off a Cliff Again as Cryptocurrency Slump Deepens

Image courtesy of Ethereum World News archives

Image courtesy of Ethereum World News archives

Time will tell whether this latest clarification by Goldman Sachs will help recoup a portion of the losses sustained over the past few days.

Cryptocurrency traders and investors have been quick to blame recent CNBC coverage that announced the termination of Goldman Sachs' plans to launch a crypto trading desk. Bitcoin is down 5% to $6985.

In recent weeks, executives have come to the conclusion that many steps still need to be taken, majority outside the bank's control, before a regulated bank would be allowed to trade cryptocurrencies, the financial news website reported, citing one of the people.

Plans were in the works to get the desk ready by the end of June 2018. Chavez clarifies that the potential creation of a crypto trading desk is still very much in its infancy and nowhere near as far along as many speculated.

In July, the US Securities and Exchange Commission rejected a second attempt by Cameron and Tyler Winklevoss, founders of crypto-exchange Gemini, to list shares of what would have been the first-ever bitcoin exchange-traded fund.

On its website, the Bank of England warns: 'Cryptocurrencies do pose risks to investors and anyone buying cryptocurrencies should be prepared to lose all their money'.

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Things won't be getting any easier for Wall Street's crypto-traders. "At this point, we have not reached a conclusion on the scope of our digital asset offering", Goldman Sachs said in a statement.

But it seems that the opportunity to create a trading market has turned the other way for Goldman Sachs. In April, the investment firm hired crypto trader Justin Schmidt as head of its digital asset markets to explore client interest in trading crypto assets.

Bitcoin had rocketed to a record high of $16,000 in December.

Its forays into the space date back to 2015, when Goldman was part of a $50 million funding round with digital payment platform Circle. Purchasing Bitcoin from someone like Goldman Sachs supposedly makes cryptocurrency easier to stomach, particularly when concerned with being to exposed "dirty" digital coins.

Speculation about Goldman and crypto goes all the way to past year, when most considered its entrance to be a matter of time.

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