The following is an excerpt from Paul R. La Monica | September 6, 2018 | CNN.com |
Bitcoin investors are getting their digital butts kicked lately. Hard. Bitcoin prices have plunged more than 20% in the past two days.
Ethereum, Litecoin, Ripple and other cryptocurrencies have suffered similarly large drops. The reason for the latest pullback? A Business Insider report that investment banking giant Goldman Sachs (GS) may be dropping plans to launch a crypto trading desk.
Goldman Sachs told CNNMoney though that it hadn't made a firm decision about bitcoin or other cryptocurrencies just yet.
"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 asset offering," Goldman Sachs said in a statement.
But if Goldman Sachs is pulling back, that is not good news.
Naeem Aslam, chief market analyst with ThinkMarkets UK who is bullish on bitcoin, said in an email that "there is no doubt that the bitcoin price is supported by this hype that institutional banks are going to get involved."
Stories first surfaced about a possible Goldman Sachs push into bitcoin (XBT) and other cryptocurrencies last December, shortly after the two big futures trading companies -- the CBOE (CBOE) and CME (CME) -- set up exchanges for bitcoin contracts.
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