The Bitcoin price fluctuation has been worth observing over the past few days of the new month. After touching a month-long high of $7,389 just yesterday, it was again bad news this morning. This keen price movement comes amid potential cold feet among investors, who expect the U.S Security and Exchange Commission’s decision regarding approval of a Bitcoin exchange-traded fund (ETF).
It is worth noting that this approval has been rejected multiple times previously due to fears around Bitcoin’s wild price swings and alleged manipulation claims.
Earlier today, BTC fell by some $500, or 5% in just a matter of minutes and its price dropped down from the psychologically important $7,000 mark.
Elsewhere, other major cryptocurrencies including the Ethereum (ETH), Ripple (XRP) and Bitcoin Cash (BCH) were also hit hard this today – all falling at least 10%
The fortunes of most cryptocurrencies have been closely tied to bitcoin this year. Ethereum’s sell-off has been largely attributed to the huge number of ICOs that went live on Ethereum’s blockchain last year, with many of those investors bailing out throughout 2018.
This drastic fall from grace was for BTC was preceded by a rather positive expectation from market analysts and experts, who expected Bitcoin to carry a bullish run now till the end of the year and even touch the $8,000 mark soon.
So why did BTC fluctuate at such magnitude and went on to drag other major cryptocurrencies down with it?
Regulators around the world have been grappling with how to properly regulate bitcoin, cryptocurrencies, initial coin offerings (ICOs) and cryptocurrency exchanges. Last year the SEC warned that some of the coins issued in ICOs could be considered securities, meaning trading them would have to comply with federal securities laws.
In the very retrospect, the answer to BTC’s loss could have reason to do with unconfirmed reports that Goldman Sachs, a major U.S. investment bank is dissing plans to open a desk for trading cryptocurrencies. The reason reported for this move is the “uncertain regulatory landscape” regarding all cryptocurrencies and consistent ETF rejections for Bitcoin by the SEC.
Business Insider, today, said:
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, according to people familiar with the matter.
Sachs, moved swiftly to reject these claims in a statement of their own:
We have not reached a conclusion on the scope of our digital asset offering.
Earlier this year, the new Chief Executive of Goldman Sachs, David Solomon hinted that the bank was looking to add further bitcoin and cryptocurrency services to its portfolio, while the New York Stock Exchange’s parent company, Intercontinental Exchange (ICE) also plans to roll out a Bitcoin ETF as part of its crypto platform Bakkt.
There has been a certain wave of excitement about Bakkt and its involvement as a better platform compared to an ETF.
Talking to BlockPublisher, senior Cryptocurrency analyst David Gokhshtein also hinted that it is a matter of when, rather than if, for a BTC ETF to be accepted. However, he is most “looking forward to Bakkt” and the role it has in store for Bitcoin.
That being said, Goldman Sachs’ move has come after a rather rosy ride for cryptocurrencies – also supported by news that institutional money was about to get into crypto. But the current scenario has put more questions on whether that money would really arrive.
More to come from this.