Crypto Markets Enter Major Correction As Goldman Sachs Drops Plans of Bitcoin Trading Desk

On Wednesday, September 5, the cryptocurrency market has entered a severe correction with the Bitcoin price correcting by over 5% and going below $7000. The bloodbath is widespread across all other major altcoins like Ethereum, Ripple, Litecoin, etc. which are seen correcting by more than 10%, and is getting further severe.

One of the possible reasons for the latest market correction could be the report from Business Insider today which states that Goldman Sachs has called-off its plans of a cryptocurrency trading desk owing to the prolonged regulatory uncertainty in the market.

However, a person familiar with the matter said that this call-off could be temporary. The Wall Street Banking giant is currently exploring other priorities like getting more number of players into the crypto industry.

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. At this point, we have not reached a conclusion on the scope of our digital asset offering.”

In the last few months, the bank executives concluded that several steps need to be taken in the regulatory space which are out of the bank’s control. In a word with Reuters, Goldman Sachs spokesperson Michael DuVally said: “At this point, we have not reached a conclusion on the scope of our digital asset offering.”

Additionally, last week’s post from a Reddit user suggests that nearly $1 billion worth Bitcoin have been moved from wallets which have supposed links with the Silk Road cold storage wallets. The Reddit user has published all his research details connecting to Silk Road in the last few days.

The 60,000 bitcoin tokens stored in the Silk Road cold wallet, now worth $422 million has been moved to several different addresses, each of them getting 100 coins. This has resulted into a lot of suspicion regarding who is actually having the control of this wallet.

This could also be one of the reasons causing FUD in the market while leading to today’s significant market fall.