Goldman Sachs Drops Plan to Open Bitcoin Trading Desk, for Now

Bitcoin Value Drops Sharply, Concerning Investors and Experts

Is Goldman Sachs abandoning its bitcoin plans?

Bitcoin and other tokens have continued to tumble in value, amid concerns that Wall Street institutions are eschewing cryptocurrencies.

A number of reports from Business Insider claim that U.S. investment bank Goldman Sachs is ditching plans to open a desk for trading cryptocurrencies.

When questioned about the report that it is abandoning its plans, a Goldman Sachs spokesperson told FOX Business that, "We're sticking with the statement we've been using all year."In response to client interest in various digital products, we are exploring how best to serve them in the space".

He added: "The regulatory environment is going to be key to all of this and the fact that Goldman Sachs remains so concerned is clearly a blow".

Goldman Sach has explained that they are now focused more on other digital-coin services, such as a custody product.

"Their name carries weight across the globe", said Ryan Rabaglia, head trader at digital asset brokerage OSL in Hong Kong, referring to Goldman Sachs.

The desk was slated to trade in digital tokens including bitcoin, but now the major bank will no longer try to launch crypto trading in the foreseeable future.

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In December of past year, Goldman Sachs announced its plans to set up a cryptocurrency trading desk by 2018 and become the first Wall Street giant to get involved with the cryptocurrency-related trading activity.

Despite being down almost 85% from January highs, the short interest on ETH is now at an all-time high, indicating that investors are betting that there are more losses to come. One crypto writer, Tanya Abrosimova, said that the drop could be attributed to attempts to regulate the global crypto market, which may have spooked investors.

Clearly, the market still respects Goldman Sachs outlook on the crypto market.

The custodial service means Goldman Sachs would hold cryptocurrencies on behalf of funds and investors, providing a safeguard for client capital from hacking and cybertheft.

Ether is trading just above the August lows.

In line with ethereum's latest fall, hundreds of alt-coins on the website have posted declines of around 20% over the last 24 hours.

The news of Goldman getting cold feet caused the cryptocurrency market to crash. The ban in September previous year triggered a 6 per cent dip in the price of bitcoin.

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