New decisions on large Wall Street entities have led to significant devaluation of many cryptocurrencies. The collapse of bitcoin and eth coin is a direct result.
It seems that this year's cryptocurrency is not hard enough, it seems that the bad news will not stop. After a month of seemingly bullish markets finally bringing hope to everyone, the encryption world has just had a very bad week.
The first thing in encrypting the world is that the US Securities and Exchange Commission recently decided to reject the bitcoin request again. When the other hit fell, the market barely began to recover. This includes a new activity in a long-term dormant wallet full of bitcoins. This activity caused the bitcoin price to fall immediately as the wallet began sending long-lost bitcoin tokens to various exchanges.
At this point the market is already in a bad state, but many investors still have hope that things can still get better. This is when the market receives the last few clicks. First, Goldman Sachs decided to abandon the launch of the encrypted trading desk. After the news was released, Bitcoin immediately fell by 7%, but the crash of ethereum was even more serious. In the first 24 hours after the announcement, ethereum price fell by 15%.
To be fair, Goldman Sachs did not fully turn to encryption projects. Instead, it just postponed for a while and seemed to be due to bad regulations. Despite this, this decision has had negative consequences for the entire encryption world. In addition to the collapse of bitcoin and ethereum, other leading coins such as ripple and litecoin have also dropped a lot.
In addition, Goldman Sachs is not the only one to abandon or postpone its large encryption program. Mike Novogratz is a well-known bitcoin bull and does the same thing. His plan to launch an encrypted hedge fund was put on hold, which is good for commercial banks.
Until now we realized that this industry depends on the extent of Wall Street encryption. When we look back, big plans like this have made encryption enthusiasts excited for more than a year. To make matters worse, all of these negative effects occurred almost simultaneously, causing the market to fall when it finally began to look up.
According to sources familiar with the bank's plans, Goldman Sachs is reducing the priority of the encrypted trading desk. Instead, it plans to use its efforts for other encryption services, such as hosting products. The bank has been trying to enter the encryption world, but it still only takes a few small steps. A few months ago, as the head of the digital asset market, recruiting Justin Schmidt was the biggest improvement.
According to its spokesperson, the bank is still considering how to provide the best service to its customers. Unfortunately, they do not seem to have reached any real conclusions about digital asset products.
At this point, Goldman's cautious attitude should not surprise anyone. After all, this year bitcoin coin lost nearly three-quarters of its value. In addition, the number of encrypted transactions on various exchanges has dropped by 80%. The total encrypted market value is about $205 billion, almost four times that of January. All in all, cryptocurrency is not a good place right now, and there is an urgent need for some positive development.