Goldman Sach CEO sets Cryptos on a Humpty Dumpty FallSeptember 8, 2018
CNBC publishes “If you put $1,000 into bitcoin on that day, you would have lost about $650, with $350 left in it today.”
It was a humpty dumpty drop in crypto prices after the news that claimed that Goldman Sachs stated that they were dropping bitcoin trading.
Following the news, the whole of the crypto market went down. The entire market lost nearly 64% of its value on Thursday, there are cryptos that lost even more. The bulls were sensing the doom. The bears were controlling the trends. The trend was not a good sign because starting Wednesday morning the price of bitcoin along was sinking and sinking down reaching the year’s low over again.
Following the price crash down, the Forbes reported on “Why Goldman Sachs’s Decision Doesn’t Matter.”
Initially, when Goldman Sachs stated that they wanted to review their plans about being involved in the cryptomarket. It was a lot of support in the investor perception in a positive way for obvious reasons because the Goldman Sachs were sitting on the top of the ladder. It led to a spillover effect where several other major tier-one banks also were involved.
Later on Thursday, there was yet another news stating that the decision of Goldman Sachs dropping crypto was fake news.
Meanwhile, Forbes published, “Goldman Sachs stops exploring the option of crypto desk, can this entire thing collapse?” They justify their interrogation on this matter that this is just a temporary spillover effect because Bitcoin was being traded already in major exchanges. The report also stated that it was an “Old Trick in the Book.”
The sooner it was reported that the news from Goldman was fake it is suspected that it is the bear game to create a panic in order to trigger a major sell-off.
Crypto analysts are of opinion that a major sell off and a price drop is the right time to buy explained thus “buy when there is blood in the streets.”
Martin Chavez stated, “Maybe someone who was thinking about our activities here got very excited that we would be making markets as principals in physical bitcoin, and as they got into it, they realized that is part of the evolution but it’s not here yet.” He also added “safe custody solution was a prerequisite for further cryptocurrency-related services.”
The original news about the Goldman Sachs deprioritizing crypto came from the Business Insider. Deprioritizing due to regulatory uncertainty became the odd news; however, related facts that were discussed like from the perspective of custody and in terms of institutional grade custodial solution for bitcoin were all forgotten.
Ultimately, Goldman Sachs are interested in having an institutional grade custodial solution in the long run. They are developing OTC derivatives for Bitcoin. So, Bitcoin will regain the losses made in the past week after clarity on what is fake and what is true about Goldman Sachs.