Crypto Market Takes A Bloody Hit After Goldman Sachs Scraps Crypto Plans

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One of the major causes of Goldman's hesitation, according to the report, is the continued regulatory uncertainty surrounding the digital currency sphere.

For all the recent talk about long-term bullish behavior and bitcoin reaching $10,000 by November, it's becoming clearer and clearer that analysts have no idea what they're talking about, and it's almost impossible to predict where cryptocurrencies will go considering they are all still too vulnerable to outside news and influence.

According to a report published by Business Insider, the Wall Street giant has made a decision to downgrade its plans over the cryptocurrency space's regulatory landscape.

But with regulatory waters still murky, executives have decided more steps need to be taken, majority outside the bank's control, before a regulated institution would be allowed to trade cryptocurrencies, according to Business Insider.

"A lot of retail investors' hopes for a bigger institutional presence were really being driven by Goldman Sachs". "At this point, we have not reached a conclusion on the scope of our digital asset offering", a spokesperson for Goldman reportedly told Business Insider.

Eight months ago, just after the price of bitcoin hit its all-time high of more than $19,000, Bloomberg reported that Goldman Sachs was working to set up a cryptocurrency trading desk.

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The crypto slump is impacting other currencies, with litecoin and bitcoin cash both lower by more than 3%, while ethereum, has slumped 20% in value over the past 24 hours, falling to its lowest level in over a year.

The Goldman Sachs company logo is seen in the company's space on the floor of the New York Stock Exchange, (NYSE) in New York, US, April 17, 2018. As Bitcoin ETFs have been denied by the U.S. Securities and Exchange Commission (SEC), perhaps Goldman Sachs is not seeing the frameworks it needs to introduce cryptocurrencies to its clientele.

Goldman Sachs, however, isn't saying anything definitive for now.

"They were not a part of the ecosystem yet, but to the extent that they represent the institutional herd, this is a negative." .

Cryptocurrency markets seemed to respond negatively to the news. The ban in September a year ago triggered a 6 per cent dip in the price of bitcoin.

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