Bitcoin plunges sharply after Goldman Sachs backtracks on plans

The past week witnessed sharp losses in the bitcoin and other digital currencies, as the bitcoin tumbled from its highest level in a month at $ 7,335 quickly and sharply, to reach its lowest level in two weeks at 6,253 dollars, as the open selling in the digital market accelerated during the past week to incur The first digital currency, the first weekly loss in a month, lost about 15% of its value, after weeks of recovery in the short term, and the total market value decreased by %2 to fall from 240 billion dollars to 190 billion dollars, these large losses come with renewed fears in the market Digital regarding the approval of the major financial institutions on Wall Street in digital currencies and the crypto industry.


Business Insider, citing informed sources, reported that Goldman Sachs, the largest financial institution on Wall Street, has retracted its decision to set up a digital currency trading desk, as it said that this matter was no longer included in its priorities, and the group attributed this decision to the regulatory environment. Cryptocurrencies are still ambiguous so far, along with the difficulty of trading digital currencies in banks that are subject to supervision.

It is reported that Goldman Sachs intended to become the first major company on Wall Street to enter the digital world and trade digital currencies, and previously announced that it was considering setting up a unit focused on studying digital currencies by the end of last June, which would give a strong impetus to the market. Digital about the recognition of major financial institutions in digital currencies.

Over the past year, digital currencies have flourished and their popularity has increased dramatically, which made many major companies in Wall Street consider entering this wide field, and with the sharp decline of the bitcoin currency and its loss of more than 65% of its value since it reached its highest level ever at $ 19,700, interest and interest began These companies decline significantly.

In the same context, some bad news came from Japan, the second largest cryptocurrency market, which reported that the Financial Services Authority is still using the policy of restricting cryptocurrency trading in order to prevent illegal operations and address manipulation and fraud attempts against investors.

The authority has tightened extensive control over the registration procedures for cryptocurrency trading platforms under the amended Payment Services Law, which began to be implemented in April 2017, as the number of questions required to be answered in the registration procedures has become about 400 questions. Measures necessary to ensure the integrity of the system.

Bitcoin has stabilized after a sharp decline at $6,200 and is likely to see a limited recovery in the short term to test the $6,500 level as markets remain cautious and affected by negative news, however this is not guaranteed due to the difficulty of predicting the crypto market.

Mohamed Abdel Khaleq

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