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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Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors
When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat. These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor. But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.
Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace. The real benefit to trading in these offices is to participate in the free flow of trading ideas and information. Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed. Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?
While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.
Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors. The goal of the platform is to help newcomers shorten their learning curve,…
CoinFlip Scores Big with BRD Wallet Partnership
As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible. While many crypto users are extremely tech oriented, a lot of those on the sidelines are not. The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above. In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country. Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.
In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map. Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells. BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit. The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.
Cryptocurrencies are already making a huge difference around the world. Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…
Cryptocurrency Collateralized Debt Positions Are Growing in Popularity
While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle. Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance. One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess. That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS. These projects have managed to find a foothold in the market and have a better chance than most of staying there. While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.
What is a Cryptocurrency CDP?
In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount. There are several examples of this in our day to day lives. Auto title loans from large companies like TitleMax are extremely popular with consumers. Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has. The consumer can continue using their car as long as debt payments are made.
The same concept applies to cryptocurrency CDPs. Consumers are able to put up crypto tokens, such as…
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