Right in line with the post-Labor Day Weekend tech sell-off occurring in the stock market, Bitcoin’s price has also dropped the last 24 hours as the digital currency has lost over 12% of its value. Since reaching $7,382.61 on Wednesday, it’s now currently trading at $6,458.32 as of 3:00 p.m. ET.
The price of the leading cryptocurrency got knocked down by news that Goldman Sachs is on the verge of scrapping its plans to have a digital currency trading desk. The ebbs and flows of Bitcoin’s price have been dependent upon news of institutional trading firms like Goldman Sachs and BlackRock getting involved in cryptocurrencies.
“In response to client interest in various digital products, we are exploring how best to serve them in the space. At this point, we have not reached a conclusion on the scope of our digital asset offering,” Goldman Sachs said in a statement.
Despite this latest news, some cryptocurrency analysts are still bullish on the future of Bitcoin.
“Obviously the Goldman news has been disappointing to those Bitcoin holders, people freaking out that ‘a big bank trading desk is backing off, maybe I should to'” said CNBC “Futures Now” trader Brian Stutland. “But I would say, ‘Forget about those guys. Bitcoin was made to deposit off the transactions of bank sheets–we don’t need them.'”
Related: Bitcoin Bounce Ignites Talk of Another Comeback
Bitcoin ETFs Await
The price of Bitcoin reached a high of $20,000 in late December of last year, but has since lost over 60% of its value as digital currencies continue to face concerns regarding manipulation and security. Despite efforts by various firms to bring Bitcoin and other cryptocurrencies under regulatory control, Bitcoin ETFs continue to face a legal labyrinth to legitimacy in the investment space and despite efforts by firms, they keep encountering their own Minotaur in the form of the Securities and Exchange Commission.
Brian Kelly, founder and CEO of BKCM LLC, an investment firm focused on digital currencies, is optimistic that a Bitcoin ETF will finally slay the Minotaur and make its way into the investing world, but it will take time and must address certain issues:
- February 2019 is likely earliest for an ETF–the US Securities and Exchange Commission postponed their decision on a bitcoin ETF until late September, but Kelly foresees the decision getting pushed back further to February.
- SEC needs surveillance ability–how will the SEC monitor instances of fraud rather than prevent it
- Futures market is not mature enough
In an attempt to fall under the governmental regulation of the SEC, the cryptocurrency industry has been unable to bring this into fruition, starting with the Winklevoss Capital Management founders Cameron and Tyler Winklevoss application, which was rejected twice.
For more information on the cryptocurrency market, visit the Bitcoin category.