Goldman Sachs Drops Bitcoin Trading Desk Plan

Bitcoin

Bitcoin values have dropped 3 per cent

When questioned about the report that it is abandoning its plans, a Goldman Sachs spokesperson told FOX Business that, "We're sticking with the statement we've been using all year."In response to client interest in various digital products, we are exploring how best to serve them in the space".

As of now, Bitcoin is once again trading above the $7,000 mark. The operation might even be up and running by June, two sources said.

Bitcoin, which is the world's biggest cryptocurrency, fell almost 10 per cent earlier this morning and is now down 4 per cent to $6,419. However, while speaking at the ongoing TechCrunch Disrupt 2018 conference, Goldman Sachs chief financial officer Marty Chavez called the claim "fake news". Following news of a delay, Goldman Sachs CFO Martin Chavez is now saying that the firm never had a timeline for it in the first place.

"The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they're settled in USA dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges", Chavez.

Chavez also remarked how the exploration of digital assets was something that "would be evolving over time".

It follows media reports, originally in Business Insider, that Goldman Sachs is shelving plans to set up a cryptocurrency trading desk.

The next key level to watch for Bitcoin is US$5,000, according to Innes, who said a drop below that threshold may cause losses to accelerate. He pointed out how the firm is interested in the idea of it existing, but admitted that "it's a long road".

South Korea's national postal service operator, Korea Post, has reportedly sought out Goldman Sachs' assistance in regards to learning about cryptocurrencies.

The Wall Street giant has not given up hope of trading cryptocurrencies entirely.

Korea Post, which now oversees a $112 billion investment fund, will soon meet with executives from the Goldman Sachs research team to discuss digital assets, artificial intelligence and blockchain technology.

Lloyd Blankfein, the bank's CEO had tweeted in October that Goldman was "still thinking about bitcoin".

The sharp sell-off that gripped cryptocurrency markets on Wednesday has extended into a second day, with major digital assets across the spectrum continuing to fall during trading on Thursday.

What are your thoughts on the latest from Goldman Sachs?

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