Bitcoin Price, Crypto Markets Fall After Goldman Reconsiders Crypto Trading

Bitcoin price retreated this morning, losing 6% of its total value in an hour, after the publication of a news report stating that investment bank Goldman Sachs may be reconsidering its foray into bitcoin trading. As of this writing, bitcoin was trading at $7009.59, approximately 5% down from its price 24 hours ago. The original cryptocurrency fell below $7,000 at 11:06 UTC this morning before making a slight recovery.

Cryptocurrency markets, which were on an upswing on the back of rising prices for bitcoin, also fell. They lost $15 billion in value in less than 3 hours. As of this writing, they had a valuation equal to $223.8 billion, down from $239 billion this morning.

In its report, online publication Business Insider stated that Goldman Sachs had decided not to pursue bitcoin trading because there were several steps involved, most of them outside the bank’s control, before regulators allow a bank to trade in bitcoin. The investment bank, however, denied the BI report in statements and quotes to Reuters and CNBC. “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 offering,” the firm stated.

Goldman Sachs is a clearing agent for bitcoin futures and has hired a crypto trader to head its digital asset markets group. Considering the scale of its operations, a Goldman trading desk will make a significant difference to liquidity and trading volumes for bitcoin.