The cause of the recent dump in the price of cryptocurrencies linked to the Goldman Sachs ditching their decision on cryptocurrency trading on September 5 has been debunked by Goldman Sachs CFO, Marty Chavez, in a chat at the TechCrunch Disrupt Conference, on Thursday.
The Impact Of the Goldman Sachs Fake News
The price of bitcoin has stabled for a while and gathering some gains after a long time of selloff by bears, with enthusiasts expecting it to move to $8,000. This was cut short on the September 5th, with the news of Goldman Sachs shelving aside its plan for a cryptocurrency trading platform.
Before the news, Goldman Sachs decision to delve into cryptocurrency trading desk has created a surge of hope among cryptocurrency enthusiasts and traders as a result of more institutional investors investing in cryptocurrencies. This is considered essential to the growth of the cryptocurrency industry.
The news of the withdrawal of plans by Goldman Sachs, however, was widely reported on September 5. The news was said to have caused the recent happenings in the cryptocurrency market, which caused a loss of 12% in market valuation. Bitcoin, the most valued cryptocurrency dropped 15%, Ethereum 18%, EOS and Bitcoin Cash taking 20% loss in value also.
The News is Fake – Goldman Sachs CFO, Marty Chavez Says
Amid the negative impact of the news on the crypto market, Goldman Sachs CFO, Marty Chavez debunked the report to be fake. While speaking at the TechCrunch Disrupt Conference, on Thursday, he stated that he was at New York, co-chairing a meeting when he noticed the news. He noted that the firm did not announce any change of plans. Thus he described the report as fake and not to be considered whatsoever.
He further stated that the firm’s decision to explore cryptocurrency market is a decision that will not change anytime soon.
But the next plan on the line by the banking giant according to Chavez is Bitcoin derivative as he states that,
“The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they’re settled in U.S. dollars, and the reference price is the Bitcoin – U.S. Dollar price established by a set of exchanges.”
While the fake news has impacted the dump in market value, the cryptocurrency community awaits the US SEC announcement on the postponed Bitcoin ETF approval and also the review over the rejected Bitcoin ETFs, which could bring positive impact to the market again.
However, prominent cryptocurrency exchange, Coinbase has started plans to partner Blackrock for a Bitcoin ETF.