The crypto market has shown a rapid downfall since last day. Especially, today the market is significantly down. Mostly, all the top coins are declining above 10% due to the Goldman Sachs group backing out on plans to start a devoted cryptocurrency trading desk.
At the time of writing, Bitcoin (BTC) is down over more than 10%, Ethereum (ETC) has dropped up to 20%, XRP and Bitcoin Cash (BCH) are down over more than 15% and EOS is dropped to 20%. Market is dealing with some crises as the news broke out that Goldman Sachs has backed out from the deal over trading with BTC.
As Bloomberg announced back in Dec 2017 about Goldman Sachs Group Inc, is setting up a trading desk to make markets in digital currencies such as bitcoin. The market skyrocketed at that time as bitcoin reached to its highest price of $18,737 and market capitalization of $313.82 billion. But recently, the sources from Business Insider claims that Goldman has backed out of its commitment on starting trading with the cryptocurrency. Goldman Sachs spokesperson Michael DuVally said:
“At this point, we have not reached a conclusion on the scope of our digital asset offering”
However, the bank is not backing out altogether from the crypto trading. Business Insider sources also claims that Goldman Sachs is looking forward to focus on the custody product for crypto, which will allow it to hold cryptocurrency on behalf of large clients and track its price.
The reason why the bank has lowered the priority of this project is because they think the currency it in developing stages and are not sure about its volatility. However, company’s top officials also remained sceptical about digital assets. Goldman Sachs’ CEO Lloyd Blankfein said that Bitcoin trading is not for him, but clarified that if he’s open to considering it, if the cryptocurrency becomes “more established.”
The response of the market overall has been rapid and negative. The overall market has lost around 18% of its capitalization in just the half-day after the announcement. An even more harsh glimpse sees today’s drop adding to a drastic descending push on bitcoin price; watching it dip to less than $7000. This downfall may continue until BTC prices hit support levels; some of which are as low as $6000.
The next few days are going to be crucial for market. It will show investors a lot about Bitcoin price action. Will we see a price correction from this big drop? Or will sellers follow the lead from this action and continue pushing Bitcoin downward? Its low point is around $5800 for the year; will we see that later this month or the market will still go down?
For that we have to wait and watch the next few days, what will be happening to the market? But if Goldman Sachs comes out with a new plan to built a better relation with BTC, we may see something that the market finds out fruity.