Third rapid drop in 24hrs sends Bitcoin price down to $6400

Bitcoin Value Drops Sharply, Concerning Investors and Experts

Back in December 2017, Bloomberg reported that "people with knowledge of the strategy" the bank was looking to set up a trading desk.

Concurrently, the investment bank (which is already a market maker for Bitcoin futures and contracts for difference) plans to forge ahead with plans for developing a cryptocurrency custody solution - a service which Coinbase and BitGo are also working on.

Per that report, Goldman Sachs wanted to have it ready by the end of June 2018.

The major cryptocurrencies slid quickly on Wednesday, with Bitcoin falling about 5% in about an hour, while Ethereum and Ripple were also hit. This time, the sell off was likely triggered by Goldman Sachs announcing it will drop short-term plans for a crypto trading desk.

Near 1400 GMT, the cryptocurrency was trading at around $7,000, down about five percent from Tuesday's level.

The biggest problem for financial institutions that want to buy and sell bitcoin is that the centralized exchanges the asset trades on have a history of being vulnerable to hacks. The hitch is that the regulatory framework from cryptocurrencies is murky. So far, Goldman has apparently not been able to do that.

When questioned about the report that it is abandoning its plans, 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".

The Wall Street giant has not given up hope of trading cryptocurrencies entirely.

However, while at a TechCrunch conference in San Francisco on Thursday, the CFO of Goldman Sachs, Martin Chavez, disputed any claims that the bank had been considering setting up a trading platform, saying that such was fake news and that Goldman Sachs has never set any timeline for building such a trading desk.

So Goldman is still in the game, but the market seems to be sceptical. News related to institutional traders tends to have some impact on bitcoin's price - indicating that there is an appetite for institutional involvement in the cryptocurrency world.

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