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Is Wall Street The Cause Of The Ethereum Crash?

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New decisions from large Wall Street entities have caused a lot of cryptocurrencies to sharply lose value. Bitcoin and Ethereum crash came as an immediate result.

Large Ethereum crash follows Goldman Sachs new announcement

As if this year wasn’t hard enough on cryptocurrencies already, it would seem that the bad news still won’t stop coming. After a month of a seemingly bullish market that finally gave hope to everyone, the crypto world has just had a really bad week.

The first thing that hit the crypto world was the US SEC recent decision to once again reject the Bitcoin ETF request. The market barely started to recover from this, when another hit fell. This one included a new activity within a long-dormant wallet filled with Bitcoin. The activity caused BTC price to drop immediately, as the wallet started sending long lost BTC tokens to various exchanges.

The market was already in a bad shape at this point, but a lot of investors remained hopeful, thinking that things can still get better. That is when the market received the final few hits, starting with Goldman Sachs’ decision to drop the launch of crypto trading desks. Immediately after this news, Bitcoin fell by as much as 7%, but Ethereum crash was even worse. ETH dropped by 15% in the first 24 hours following the announcement.

To be fair, Goldman did not completely turn its back to the crypto project. Instead, it only postponed it for a later time, seemingly due to bad regulations. Still, the decision had bad consequences for the entire crypto world. Besides the Bitcoin and Ethereum crash, other leading coins like Ripple and Litecoins dropped down a lot as well.

Additionally, Goldman is not the only one who dropped or delayed its big crypto plans. Mike Novogratz, who was a known Bitcoin bull, did the same thing. His plans for starting a crypto hedge fund were shelved in favor of a merchant bank.

Only now do we realize just how much this industry was depending on the Wall Street crypto adoption. When we look back, big plans like these were having crypto enthusiasts excited for over a year now. What’s worse is that all these negatives came at pretty much the same time, causing the market to go down just when things finally started looking up.

Cryptos still not ready to get on Wall Street?

According to sources familiar with the bank’s plans, Goldman Sachs is moving the crypto trading desks lower down on its list of priorities. Instead, it plans to dedicate its efforts to other crypto services, like providing custody products. The bank has been trying hard to enter the crypto world, but it still only made small steps to do so. The biggest progress was hiring Justin Schmidt a few months ago, as a head of the digital asset markets.

For the time being, the bank is still supposedly looking into how to best serve its customers, according to its spokesman. Unfortunately, it would seem that they have yet to reach any real conclusion regarding the digital asset offering.

Goldman’s caution is should not really come as a surprise for anyone at this point. After all, Bitcoin lost almost three-quarters of its value this year. Additionally, crypto trading on various exchanges went down by 80%. The total crypto market cap is at around $205 billion, which is almost four times less than its worth back in January. All in all, cryptocurrencies are not in a good place right now, and some positive development is desperately needed.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Understanding the Uses of Different Types Of Cryptocurrencies

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Cryptocurrencies – a term which has become incredibly prominent in the mainstream media during recent years due to the proliferation of Bitcoin millionaires. As a result, the new form of currency has earned an almost infamous status. However, as with any major step forward, there is still much confusion regarding the use of cryptocurrencies, what different types of innovative electronic cash exist and what they might mean for the future.

We’re putting all of this to rest as we explain what each of the leading cryptocurrencies can do.

Bitcoin

The most popular form of cryptocurrency, Bitcoin was first thought up in 2008 by the elusive and still unknown creator, Satoshi Nakamoto, who published the whitepaper online.

It took almost a decade for the cryptocurrency to reach its peak, but in December 2017 a single Bitcoin roughly exchanged for the price of $17,000, meaning anyone who held a substantial amount of the electronic cash became significantly wealthy.

In its early years, the cryptocurrency was strictly used as an alternative for cash transactions, and predominantly for trading goods and services. However as it has increased in popularity, its range of uses has also widened, now deployed for a variety of purposes including acting as collateral for investments at merchant banks, a direct debit for subscriptions services and most notably for sports betting.

Ripple

Bitcoin’s closest source of competition, Ripple was founded…

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New DoJ Ruling May Cripple Gambling dApps

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A new decision made by the US Justice Department has expanded restrictions regarding online gambling in the US affecting gambling dApps. While the Federal Wire Act of 1961 prohibited online gambling regarding sports since 2011, the new decision expanded on this, and it now includes all forms of internet gambling. Unfortunately for many, this now also includes cryptocurrencies.

The new decision came due to considerable difficulties when it comes to guaranteeing that only interstate betting will take place and that payments will not be routed via different states.

The new announcement was explained in a 23-page-long opinion issued by the Department of Justice’s legal team, which pointed out that the 2011 decision misinterpreted the law. According to that decision, transferring funds was to be considered a violation, but data transfers were not included. By exploiting this oversight, it was possible for gamblers to turn to internet gambling. Unsurprisingly, many have realized this early on, including startups, as well as large, established firms. This, of course, also included cryptocurrency companies as well.

The new decision changes what is allowed online

The decision to include all forms of internet gambling is a massive hit in the…

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7 Steps to Recovery from a Crypto Trading Loss

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Whether you are a newcomer to the crypto market who mistakenly invested a large amount into the wrong coin, or a professional that made a well-researched decision and something still went wrong, the result it the same — you lost your money to the crypto market. This is a big problem, but also a problem that every crypto trader faces at some point.

The reason may be anything, from simple bad luck to the lack of research. Add to that the fact that the crypto market continues to be extremely volatile, and it is clear that not all of your trades are going to end up successfully.

Whatever the reason is, the fact remains that you experienced a loss and that this is a problem which can affect more than your funds. It can also affect your mind and feelings. Since every successful trade that you have the potential to make in the future depends on you, you have to recover first, and only then should you worry about the funds.

The road to recovery is different for everyone, and it will take a different amount of time and effort. However, there are a few general steps that you can take to recover from a crypto trading loss.

Step 1: Stop and calm down

You have just suffered a major loss. It may have been your mistake, or…

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