Despite the great news about the bitcoin adoption with the Lightning Network, bitcoin prices fell very rapidly like a landslide due to the investors showing a lack of courage or confidence at the US Security and Exchange Commission’s (SEC) verdict on whether to approve or not the Bitcoin Exchange Traded Funds (ETF) expected later this month. Such a decision in the past has planted fear in the eyes of SEC around bitcoin’s volatile price and manipulation of said price.
According to CoinDesk Bitcoin (USD) Price data, bitcoin fell around 5% in just a matter of minutes and are still falling at 4.39% at the time of writing. Bitcoin was above the US$ 7,000 mark on September 5 but at the time of writing, a single bitcoin is now worth US$ 6,409.70, and with the freefall still happening, that amount is expected to decrease further.
The freefall in bitcoin price came after unconfirmed reports from Business Insider which stated that US investment bank, Goldman Sachs, is discarding their plans to open the window for trading cryptocurrencies due to the uncertain regulatory landscape. The report says that Goldman Sachs has shifted their plans to open a desk for trading cryptocurrencies deeper down the list of priorities for how long it can participate in the market.
The bank released a statement in response to the report stating that they haven’t concluded the scope of their digital asset offering yet.
Regulators from a global scale have been struggling with how to regulate bitcoin, other cryptocurrencies, Initial Coin Offerings (ICO) and cryptocurrency exchanges properly. The SEC gave a warning in 2017 that ICO issued coins might be considered as securities and that you have to comply with the federal security laws to trade with them.
According to Forbes, Goldman Sachs’ move came after the bitcoin and broader cryptocurrency token price has been well supported by news this year that institutional money was about to get into cryptocurrency industry.
The president and chief operating officer of Goldman Sachs, David Michael Solomon, pointed out that the bank is planning on adding more bitcoin and cryptocurrency services into their portfolio. Solomon stated in an interview with Bloomberg that the bank must “evolve its business and adapt to the environment.”
The bitcoin bulls are trying to survive till November as that’s when the New York Stock Exchange’s parent company, Intercontinental Exchange (ICE), plans to launch a bitcoin ETF with their cryptocurrency platform Bakkt. It will be in partnership with Starbucks, Microsoft and Boston Consulting Group.
Bitcoin was at an all-time high in 2017 at around US$ 20,000 but most of them have been sold off slowly in 2018, dropping their price to around US$ 6,421.50 and it’s provoking a greater sell off to a wider cryptocurrency market.
Other cryptocurrencies like Ether, Ripple, Bitcoin Cash, and EOS also plummeted down hard, falling at a minimum of 10%. The fall of other cryptocurrencies has been closely linked to bitcoin in 2018. The fall of Ethereum can also be due to many of the investors retreating throughout 2018 due to a large number of ICO that went live on Ethereum’s blockchain in 2017.