At press time, the price of everyone’s favorite cryptocurrency has shrunk back to $6,900. This is about $100 less than where it stood yesterday.
Bitcoin was trading for about $6,900 on Saturday, though it shot back up to the $7,000 range yesterday afternoon. It appears the bear run isn’t quite over yet, as bitcoin is still experiencing instability in its present status.
The currency has been engaged in a massive sell-off since July 23 according to one source, and most of the cryptocurrency space has been relatively unstable. Many believed the price hikes occurring prior to that time were the start of a new bull run; however, bitcoin’s jump beyond $8,000 in such a short period was likely to cause another pullback. The currency has since lost upwards of 20 percent since it began that run.
We may see bitcoin trading for $6,800 in the coming days, though it still runs the risk of dropping back down to $6,100 if the bulls aren’t careful.
Interestingly, Goldman Sachs recently commented that it expects to see more dips occurring in the bitcoin price, though it has no plans to cancel its bitcoin trading desk. It is believed by one source that this desk is likely to cause spurts in the price, and that it will attract further institutional traders, thereby bringing legitimacy to the arena and causing even more price bursts.
In addition, Goldman Sachs says it’s considering offering bitcoin and cryptocurrency-based securities, though no formal decision has been made as of late. Representatives recently stated:
“In response to client interest in various digital products, we are exploring how best to serve them in this space. At this point, we have not reached a conclusion on the scope of our digital asset offering.”
Goldman Sachs has taken many steps to ensure bitcoin and cryptocurrencies receive the attention and trading exposure they deserve. One major step was the hiring of David Solomon as the bank’s new chief executive just a few months ago, so it’s interesting that despite all this hard work, staffers appear convinced that bitcoin is destined to fail.
Goldman has also commented that it is looking to add “further bitcoin and crypto services” to its portfolio. The big question is why would a company continue to put so much time and effort into something it’s so certain will disappear?
Probably because Goldman knows there’s an audience for these kinds of services. Whether enthusiasts choose to believe in bitcoin’s demise or not, there’s clearly a group – a growing group – of people that are certain it’s going to live on and potentially change the financial infrastructure as we know it, and Goldman likely realizes there’s profit to be made in this department.
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