Bitcoin extends slump on Goldman Sachs report

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Bitcoin extends slump on Goldman Sachs report

Goldman Sachs first announced plans to start a crypto trading desk late a year ago, but, at least for now, those plans are on hold. According to Business Insider, around 5:50 a.m. EST, Bitcoin, which was valued at $7,350 in the early hours of the east coast trading day, lost more than $200 in value in a matter of minutes, and within an hour dipped below the "psychologically significant" $7,000 mark. The news has investors nervous that the USA financial giant might know something about Bitcoin and cryptocurrencies that the market has not learned yet.

In recent weeks, Goldman executives have concluded 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.

Plans were in the works to get the desk ready by the end of June 2018.

However, Martin stated that this news was off-guard as the firm had not made any announcement regarding the Bitcoin Trading Desk.

While many banks and institutional investors are dipping their toes into the world of cryptocurrencies, concerns about everything from money-laundering to market manipulation and unclear regulations have prevented widespread adoption. As Bitcoin ETFs have been denied by the U.S. Securities and Exchange Commission (SEC), perhaps Goldman Sachs is not seeing the frameworks it needs to introduce cryptocurrencies to its clientele. So far, Goldman has apparently not been able to do that.

"In response to client interest in various digital products, we are exploring how best to serve them in the space", the spokesman said. In addition, in April this year, Goldman brought Justin Schmidt on board as its head of digital assets markets. Also, Goldman Sachs is engaged in developing Bitcoin derivatives to satisfy the clients' needs.

So Goldman is still in the game, but the market seems to be sceptical.

Bitcoin and other tokens have continued to tumble in value, amid concerns that Wall Street institutions are eschewing cryptocurrencies.

Clearly, the market still respects Goldman Sachs outlook on the crypto market.

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