Bitcoin drops after Goldman Sachs ditches to launch cryptocurrency trading desk

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Major Wall Street investment bank, Goldman Sachs has finally made known its stance; Bitcoin falls below $7,000 after it has reportedly dumped its plan to launch a cryptocurrency trading desk, at least for now. The bank clarifies that such plans are not a priority for the probable future, but rather it will be focusing its energy on a custody product for crypto that would better service large institutional clients.

People, who are well known with the matter, stated that the decision has been made as the regulatory situation is still a grey area for the U.S. when it comes to cryptocurrency. According to data, the world’s largest digital currency fell roughly 5 percent to a low of $6,938.10.

However, as per the sources, the banking giant hasn’t abandoned the idea completely but is rather pushing the possibility to lower down on its priorities list and could still move to open the desk at a later date.

Prolonged rumors of significant progress were outstretched within the company towards the establishment of a direct crypto trading desk over the past couple of months. Despite the ambiguity regarding the decision with the bank’s commitment towards launching a crypto trading desk, comments from within and other respected sources strongly recommended some relevant interest on the subject matter. This includes a comment from a spokeswoman from the bank who went on to clarify how they are working to meet the demands of their clients who have expressed interest in cryptocurrencies.

Nevertheless, some level of clarity about the developments in this area began to surface in January 2018. Goldman prepared to launch “its own, more flexible version of a future, known as a non-deliverable forward, which it will offer to clients,” – as revealed by New York Times, then.

The recent report on Business Insider is finally expected to lay to rest, at least for the time being in the crypto market. According to the report, the unclear nature of the regulatory framework surrounding cryptocurrencies is among the key reasons why the bank will not get directly involved in the cryptocurrency market.

Source: CNBC

Bitcoin drops after Goldman Sachs ditches to launch cryptocurrency trading desk