Bitcoin Price Stabilizes at $6,400 While Analyst Sticks to Crypto Downtrend

Bitcoin Price Stabilizes at $6,400 While Analyst Sticks to Crypto Downtrend

Bitcoin Price Stabilizes at $6,400 While Analyst Sticks to Crypto Downtrend

The "gold rush" is in the past and now the average person is aware of blockchain and digital currencies, thus erasing the surprise element of previous year.

Crypto markets are down sharply, with BTC falling by as much as 5.3% on news Wall Street is out of love with the thought of digital assets, at least for now.

"At this point, we have not reached a conclusion on the scope of our digital asset offering", Goldman Sachs spokesperson Michael DuVally told Reuters. The bank has been considering options to provide crypto trading services since at least late past year.

On Wednesday of this week, the cryptocurrency market saw a sharp decline across the board. "Even if it's not true, it should be enough to cause a minor selloff like this in cryptocurrencies".

Yet just a day later Goldman's chief financial officer, Marty Chavez, described the news report to an audience at TechCrunch Disrupt, that annual startup Mecca, as "fake news". "Know that folks also were skeptical when paper money displaced gold." created the expectation that the bank would open a Bitcoin trading desk relatively soon. They also suggested that the environment is not appropriate for a regulated institution like Goldman Sachs to become involved with cryptocurrency trading. However, a lot can happen in a year, and a lot has.

Bitcoin and cryptocurrency prices have long resembled a roller-coaster ride, but the current downturn has wiped out all price gains obtained over the last month and may indicate the onset of a new bear run. From skyrocketing valuations and market caps, cryptocurrencies have come way back down to earth. Ethereum slid 9 percent, Litecoin 7.1 percent and Ripple 7.7 percent. Bitcoin is down more than 50 per cent this year.

Goldman Sachs had been working on the cryptocurrency trading desk for a number of months, but because it still perceives an ambiguous regulatory atmosphere in the United States and its developers say there are many steps yet to be taken to crystalise the project, the firm has made a decision to put its plans on hold. It could revive these plans later, they added.

According to the bank, "Such plans are not a priority right now and the bank would rather focus its energy on a custody product for crypto that would better cater to large institutional clients".

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