Bitcoin and other digital cryptocurrencies have seen their market value tumble on Thursday, following a report that Goldman Sachs shelved plans to set up a cryptocurrency trading desk.
The move was seen as Wall Street walking away from digital currencies.
On Thursday, Bitcoin lost 4,45%, Etherum 12%, Litecoin 11% and Ripple 7%. Bitcoin was trading at $19,000 in December 2017 and is currently priced at $6,382, and falling. Since January 2018, virtual currencies have lost three-quarters of their value in terms of market capitalization.
One of the emerging issues at hand is cryptocurrency regulation. The US Securities and Exchange Commission (SEC) has warned that some coins may be regarded as securities and regulated accordingly. Authorities worldwide are concerned about the potential of digital currencies for money laundering.
Goldman Sachs Chief Financial Officer Martin Chavez told the Tech Crunch Disrupt conference in San Francisco on Thursday that reports of investment plans by the lender have always been “fake news.” The only product the bank is considering is a bitcoin derivative. But, the bank never had a fixed timetable for this move, Chavez said.