Several news sources are now saying that Goldman Sachs, which had plans to build out a cryptocurrency trading desk, is now changing plans. The news that Goldman was dropping its plans for opening a trading desk shocked markets in early Asia trading on 6 September hit some cryptocurrencies hard as some of the most popular coins dropped 15 to 20 percent.
With ethereum leading the main coins lower by dropping 19.72 percent, others follow as XRP dropped 13.92 percent and bitcoin cash dropped by 18.79 percent. Thursday morning in Asia was tough for the entire market. Of course, digital currencies have a tendency to trade in tandem, so when bitcoin and ethereum fall, many others chase these blue chip coins lower. Bitcoin is still down about 12 percent over the past 24 hours according to CoinMarketCap.
According to a Business Insider Report on Wednesday, some who are familiar with the issue are saying that Goldman is looking at the uncertainty on the horizon with regards to regulators. Note that regulators have rejected several bids by a wide range of firms to form digital currency ETFs. This most recent rejection shocked markets again. The rejections combined with a view that cryptocurrencies were being used by organized crime, as well as other factors, have damaged the reputation of cryptocurrencies in the past year.
More on this news in the coming week