Goldman Sachs CFO holds BTC; says the institutional clients want Bitcoin

Marcus Newton
September 8, 2018

On September 5 some major media outlets including Bloomberg published the news that Goldman Sachs had dropped the plans to develop a trading desk for cryptocurrencies.

Yesterday, CryptoGlobe reported the movement and dumping of some of the 111,000BTC stash - about $100m-worth of it, in fact - via the two exchanges, and attributed the dual price drops of mid-morning yesterday to a the sell-off. The news has investors nervous that the U.S. financial giant might know something about Bitcoin and cryptocurrencies that the market has not learned yet.

In recent weeks, executives have come to the conclusion 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, citing one of the people.

Editor's note (9/6/18 at 6:10 PM ET): According to one source on Twitter and an article article citing it published by CNBC, Martin Chavez, the CTO of Goldman Sachs, denied the business insider report, calling it "fake news" at Tech Crunch. Instead, the bank will reportedly focus on a custody product for digital currencies created to serve large, institutional clients. In addition, in April this year, Goldman brought Justin Schmidt on board as its head of digital assets markets.

This announcement of Goldman Sachs' interest in crypto trading was important for the virtual currency market.

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"They were not a part of the ecosystem yet, but to the extent that they represent the institutional herd [of mainstream financial institutions], this is a negative", he told CNBC. In the last 24 hours, Bitcoin lost 12% of its price and Ethereum and other coins have fared worse.

The news of Goldman getting cold feet caused the cryptocurrency market to crash.

The next few days will show investors a lot about Bitcoin price action. It was another base-jump of a fall for the most-traded crypto - continuing a pattern that has seen stretches of low-volatility punctuated at seemingly random points by big spikes and dips.

Other reports by MaliBehiribAe

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