In the intervening months, bitcoin's price has cratered, and Business Insider's Dakin Campbell and Frank Chaparro now report that the investment bank is shelving its crypto-trading plans, citing people familiar with the matter.
The fragility of the crypto market was tested by this news as it took Bitcoin (BTC) down over five percent bringing it below Dollars 6400. This year alone, the SEC has rejected several proposals and most recently, nine Bitcoin ETF submissions were rejected in just one day.
In recent weeks, Goldman executives have concluded that many steps still need to be taken, majority outside the bank's control, before a regulated bank would be allowed to trade cryptocurrencies, the financial news website reported.
The next key level to watch for Bitcoin is US$5,000, according to Stephen Innes, head of trading for Asia Pacific at Oanda Corp., who said a drop below that threshold may cause losses to accelerate. Ethereum, Ripple, and Litecoin did basically the same, with ether giving up double digits.
According to reports from Business Insider, the New York-headquartered company will be looking to focus on other projects such as a crypto custody service for large institutional clients. Sources told BI that company executive identified a number of steps that need to be taken before a regulated institution like Goldman would be allowed to trade cryptocurrencies. Total crypto market capitalization is around $222 billion at press time, down from yesterday's high of $240 billion. It being the major cryptocurrency, BTC suffers a crucial dip and reaches the graphs by going below $7,000 price as of today as per the reports by Cointelegraph BTC price index. In addition, the firm's clients demanded them to clear the Bitcoin futures contracts that are offered by exchanges and Goldman Sachs has been working towards it since May.
The expectation of adoption by Wall Street has been a major theme for the cryptocurrency market for the past year, so any kind of updates on that can certainly move the prices. The fork currency, which has been opened on Binance, has gained almost 200% and is now trading at $2.98, moving it into the top 25 cryptocurrencies, with a total market cap of just over $450,000.