Goldman Sachs Drops Bitcoin Trading Desk Plan

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Bitcoin sank further Thursday, extending the previous day's slump sparked by reports United States investment banking giant Goldman Sachs has pulled back from immediate plans to open a trading desk for the virtual currency.

The next key level to watch for Bitcoin is $5 000, according to Stephen Innes, head of trading for Asia Pacific at Oanda, who said a drop below that threshold may cause losses to accelerate. 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.

Due to the fact that Korea Post has pursued investments in real estate and infrastructure assets overseas, it's projected that their intrigue regarding cryptocurrency may play into the company's interim plans toward a possible integration.

Goldman has dropped the planned launch of a cryptocurrency trading desk to a lower spot on its list of priorities. The rest of the top five cryptocurrencies by market cap toppled by more than 12 percent.

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In recent weeks, executives have come to the conclusion that many steps still need to be taken, a lot of them 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. So far, Goldman has apparently not been able to do that. "At this point, we have not reached a conclusion on the scope of our digital asset offering".

Some are claiming that the news is likely to keep bitcoin and cryptocurrency down for good - that this was the highlight of digital money's journey towards legitimacy, and the barricades will be too much to handle without Goldman Sachs' help.

Chavez also said Goldman was trying to develop over-the-counter derivatives for Bitcoin.

Goldman has been making a clear and steady effort to capitalize on crypto markets. At the time, Circle was built specifically to allow bitcoin trading, but the company has since become a payments enterprise and recently acquired cryptocurrency exchange Poloniex. Goldman Sachs will be proceeding to provide "crypto futures and forwards" for its clients.

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