Wall Street kills the value of cryptocurrencies
It has been an interesting year for cryptocurrencies, with values falling dramatically following the crazy highs of 2017. By December last year Bitcoin was grabbing headlines across the world as the value of a single coin jumped to over £16,000. This bubble grew so quickly everyone seemed to be desperate to get a piece of the action, only fuelling the fire further.
By February values started to cool, dropping back to a more realistic price as armchair investors started to lose interest. News reporting on cryptocurrencies started to wane and the market seemed to plateau giving hope that these currencies could now offer some reliable value and stability.
Unfortunately this hasn’t been the case, as the values of the more popular currencies has only fallen since the start of the year. And now to make matters worse, widespread debate regarding Wall Street institutions shunning cryptocurrencies has created further doubt on the long-term value of the industry.
Goldman Sachs is shelving plans to set up a cryptocurrency trading desk, giving a real indication that Wall Street is about to turn its back on the industry. With most mainstream lenders keeping well-clear of digital currencies, there seems to be little safety for any future investors.
Craig Erlam, senior market analyst at FX firm Oanda, said: "It's been a rough 24 hours for Bitcoin and its peers, with reports that Goldman Sachs has postponed launching a cryptocurrency trading desk due to the uncertain regulatory landscape."
"The regulatory environment is going to be key to all of this and the fact that Goldman Sachs remains so concerned is clearly a blow" he added.
With trading today placing Bitcoin down by 4.45% to $6,382, the short-term future is looking bleak for any serious investment.
