The value of cryptocurrencies has taken a sudden bearish trend after Goldman Sachs put plans of cryptocurrency trading platform on hold.
Goldman Sachs Holding Plans Of Cryptocurrency Trading
The value of cryptocurrency had seen a minimal bullish trend recently as Bitcoin increased to $7,300 until the last 24hours, on Tuesday when it took another bearish turn when it lost over $500 of it previously accumulated gains.
Bitcoin took a dump trend to $6,450 in a couple of hours, a 12% decrease in value. Similarly, Ethereum has taken a 19% dump, Ripple 12%, Bitcoin Cash and EOS dump at 20%.
The recent dump is taking place amid trending hopes of a bullish trend of cryptocurrency before the end of the year. Tom Lee, as previously shared his thoughts that Bitcoin would rise to $20,000 this year, and also Hermann Finnbjörnsson also stated that bitcoin would increase to $10,000 by the beginning of December courtesy of traditional financial institutions role.
However, not quite long after Hermann Finnbjörnsson’s opinion on the bullish trend of cryptocurrency through the institution, an institution disinterest in the cryptocurrency market has caused a dump that has taken place over the past 24 hours.
On Wednesday, Goldman Sachs shelves aside its plan to establish a cryptocurrency platform. One of the many news that interest the cryptocurrency enthusiasts alike on the prospects of cryptocurrency as earlier informed by Goldman Sachs is set to change. This decision was primarily stated to have been made by the consideration of the regulatory uncertainty surrounding cryptocurrencies.
The Goldman Sachs decision has been taken as the sole reason for the recent dump in the value of cryptocurrency.
Lack of Regulation, and Manipulation: The Challenge of Cryptocurrency Market
The reason cited by Goldman Sachs for shelving aside its plans for cryptocurrency trading has equally been mentioned for the ten Bitcoin ETFs that were earlier rejected by the US SEC this year. The ETFs has been denied because of the lack of proper market regulations and being prone to manipulations.
The Bitcoin ETF has been the hope of cryptocurrency enthusiasts for the value of cryptocurrency to retake the bullish trend. However, interest in ETF had subsided recently as many stated that Bitcoin needed no ETF before it reached almost $20,000 as experienced towards the end of 2017, so it will not be required for it to rise again.
If the recent impact of the Goldman Sachs decision is to be considered, it shows the opinion of Hermann Finnbjörnsson on the need of the institutions for the bullish trend is also to be noted. The cryptocurrency community awaits the decision of the U.S. SEC on the review of the rejected Bitcoin ETFs, and the announcement of the ICE postponed Bitcoin ETF approval, which will be influential to the rise of the value of cryptocurrencies in general.