Bitcoin, Ethereum and Ripple prices plummeted this week after news that US banking giant Goldman Sachs was abandoning plans to open an encryption desk.
The value of a single bitcoin rose from $ 7,400 to about $ 6,300 less than 24 hours, according to the metrics recorded by the Coindesk and CoinMarketCap websites.
Bloomberg noted that the bitcoin fell to 9.8% between Wednesday and Thursday. He said the market has been trading near the lowest level since November last year. The analysis indicated that each of the first 20 cryptocurrencies had decreased during the last week.
"The fall of ethereum has scared the market," said Charles Hayter, CEO of CryptoCompare, Newsweek . And it seemed hesitant to blame the negative change solely on the bank's move, commenting: "Goldman Sachs' revaluation of their digital asset trading desk is nothing to be alarmed in. There are several financial institutions in charge who look closely at the space. . "
In any case, the market spiral – whatever the reason – was clear to see.
Business Insider reported that Golia's Wall Street no longer considered encryption a priority. The bank, sources said, was still looking for changes in regulation, in particular on how to protect the institution from the volatile nature of the market. US regulators have criticized trading platforms and are likely probing possible price manipulations.
"At this point, we have not reached a conclusion on The purpose of our offering of digital goods," the spokesman of Goldman Sachs, Michael DuVally.
Bitcoin drew attention to the past year when its value has increased. At one point, a single bitcoin was worth nearly $ 20,000 thanks to new and eager investors. But the old adage of "what must go down" has been proven accurate in the following months, with the fall in prices.
Financial experts and bank leaders have warned last year that the growing value of bitcoin was a bubble. Jamie Dimon, CEO of JPMorgan, made headlines after labeling him a "scam".
But last October, Goldman Sachs CEO Lloyd Blankfein made fun of cryptocurrency users saying he was "still thinking about bitcoin". He tweeted: "No conclusion, do not approve / reject." Know that people were skeptical when paper money moved gold. "
Various traditional financial institutions are not focused on bitcoin, but have shown interest in its underlying technology, which is a type of digital transaction register known as blockchain.  Last month, a significant drop in bitcoin prices caused an alarm after the values were reduced to less than $ 6,000. The price of a single bitcoin at the time of Thursday afternoon's publication was 6,398.74.