Bitcoin, Other Cryptos Get Hit on Bad News

The rollercoaster experience that comes with cryptocurrencies seems to be in full effect this week, with Bitcoin and others falling significantly. In less than 24 hours, $BTC plunged from a high of around $7,380 to a low of nearly $6,400. Notably that puts the currency below the $7,000 mark, which as Forbes notes has been regarded as a psychological milestone. As usual, it’s hard to say exactly what is causing this latest cratering, although there could be a couple of culprits.

First came reports that Goldman Sachs was abandoning plans to launch a cryptocurrencies trading desk, blaming regulatory uncertainty. According to Business Insider, the bank has put the project on an indefinite hold, although there are hopes of reviving it somewhere down the line. A spokesperson for Goldman Sachs didn’t offer specifics on what they may or not be looking at but did say, “In response to client interest in various digital products, we are exploring how best to serve them in the space. At this point, we have not reached a conclusion on the scope of our digital asset offering.” Given this delay, it seems likely that crypto investors that had priced increased institutional trading volume into Bitcoin may be wondering if that big day is really anywhere on the horizon.

Unfortunately the Goldman Sachs report wasn’t the only bad news that’s arisen in the past couple of days. Bloomberg also notes that a P2P cryptocurrency trading platform ShapeShift is set to make a controversial change. Known to many as “the exchange without accounts,” CEO Erik Voorhees announced this week that they’d be introducing — you guessed it — accounts that will require members to share basic personal information. Moreover, while Voorhees says these accounts are optional for the time being, he warns that they will become mandatory in one to two months. Defending the decision against critics who predict the end of his platform, Voorhees told Bloomberg, “I’ve also lived through many people declaring the end of Bitcoin. Ultimately, digital assets and digital finance will dominate the planet, and we are here to help make that happen regardless of the various naysayers.”

As they say, “when it rains, it pours.” That old cliche definitely seems applicable to the week the cryptocurrencies have found themselves in. Making matters worse, both of the two stories observers are pegging the price troubles on represent disappointments to two factions of the crypto community. On the one hand the Goldman Sachs delay is frustrating to investors who see cryptocurrencies simply as a way to make money. Meanwhile the ShapeShift change in policy could be seen as an affront to those who believe strongly in the initial intents of cryptocurrencies — which they believe includes anonymity. Obviously the results speak for themselves and it’s unclear when a turnaround will come. Stay tuned…

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Robinhood Reveals More Details on Upcoming Retirement Account

After officially announcing plans for retirement accounts during an earnings call last month, Robinhood has now revealed more details about the upcoming feature and opened a waitlist for customers. First, Robinhood Retirement will offer both Roth and Traditional IRAs to users. With these accounts, customers will be able to invest in stocks and ETFs. Additionally, accountholders will be able to craft a custom portfolio and will be able to view...

Discover Announces 5% Bonus Categories for First Quarter of 2023

The popular Discover It card — which features 1% on all purchases as well as a slate of bonus rotating categories each quarter — has revealed what purchases will earn cardholders that 5% bonus starting January 1st. For the first quarter of 2023, Discover It cardholders can earn 5% back on grocery store, drug store, and select streaming service purchases. However, there are a few asterisks to note with this offer....

AllWork Raises $4.9 Million From FINTOP Capital 

A FinTech focused on freelancer payroll has closed a significant early-round investment. This week, AllWork announced that it had raised a $4.8 million round. The Series A was led by Nashville-based FINTOP Capital with no other participants. As a result of the transaction, FINTOP's Chris Haley and Rick Holton will join AllWork's board of directors. Previously, AllWork closed a $3.8 million seed round in 2019, bringing their to-date funding total to $8.7...