The Business Insider report quoted unnamed sources as the basis of the information, giving evidence that the Wall Street firm had chose to do away with the previously hyped up trading desk. As part of that decision, Goldman has moved plans to open a desk for trading cryptocurrencies further down a list of priorities for how it can participate in cryptocurrency markets, the people said.
In recent weeks, Goldman executives have concluded 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. Instead, the bank will reportedly focus on a custody product for digital currencies created to serve large, institutional clients.
"A lot of retail investors' hopes for a bigger institutional presence were really being driven by Goldman Sachs".
For instance, one of the reasons behind the drops in both EOS and assorted altcoins could be the recent announcement by way of Wall Street giant Goldman Sachs.
"Executives have concluded that many steps still need to be taken, majority outside its control, before a regulated bank would be allowed to trade cryptocurrencies", they write.
The market value of virtual currencies tracked by CoinMarketCap.com has slumped about 75 per cent from its January peak to about US$205 billion.
"When we talked about exploring digital assets that it was going to be exploration that would be evolving over time", Goldman chief financial officer Martin Chavez said onstage at the TechCrunch Disrupt Conference in San Francisco, as quoted by CNBC. Do your market research before investing in cryptocurrencies.
Goldman Sachs, however, isn't saying anything definitive for now. However, Brian Kelly, founder and CEO of crypto hedge fund BKCM, is more anxious about the long-term impact of Goldman Sachs' about-face.
The cryptocurrency market is bleeding for the second consecutive day, with prices of most popular coins down double digits in the last 24 hours.
An even more drastic view sees today's drop as contributing to a drastic downward push on Bitcoin price; seeing it fall past the $5000 level until there are more supports. Goldman hasn't confirmed the report, but the news still sent the value of bitcoin plummeting.