After Goldman Sachs canceled the program of cryptocurrency trading counter , the bitcoin sell-off wave intensified again. According to CitiCoins, bitcoin fell by 10% on Thursday, which touched its lowest value of nine months. Along with the wave of decline, bitcoin has declined by nearly $1,000 in the past 48 hours. It was also unavoidable for the slump of other cryptocurrencies. Eth price fell by 13%, Ripple price fell by 6%, while bch price fell by 12%.
The long-term bulls who had bet on the future of cryptocurrencies have begun to be disappointed after opening positions at high positions. When Goldman Sachs gave up the cryptocurrency plan, the market’s expectation of “big players” to join the game has shattered. This also makes btc price worse.
Goldman Sachs has been delaying the plan of cryptocurrency trading, mainly due to the uncertainty of the regulatory environment. Last month, the US Securities and Exchange Commission (SEC) rejected the proposal to introduce bitcoin ETF again because SEC has been concerned about fraud and price manipulation in the cryptocurrency market. When a large number of people undersell bitcoin, it is theoretically possible to shake the market. If the cryptocurrency ETF can be successfully issued, reliable support will be provided to cryptocurrency prices and it will pave the way for more investors to bet on cryptocurrency asset.
As SEC’s concerns about cryptocurrency money laundering and customer protection heat up, regulatory scrutiny of crypto exchanges is also tightening. Goldman’s behaviour at this time also seems reasonable. If regulators don’t know the identity of the parties in the market and what they are doing, it will be the biggest challenge to regulation.
However, former Federal Reserve Chairman Alan Greenspan is relatively optimistic that the price volatility of cryptocurrency this week is actually normal, because even if the market cap of cryptocurrency has evaporated by more than half this year, it is still 37% more than the last year. According to CoinMarketCap data, since the beginning of 2018, the market cap of all cryptocurrencies denominated in US dollars has fallen by about 70%.
To discuss the future of the cryptocurrency, European finance ministers will hold an informal meeting in Vienna on September 7th, which will focus on the two themes of “chance and risk brought by cryptocurrencies” and “regulation”.
