There is no way in which the prices in the sector of cryptocurrency can increase as far as this week is concerned. Things were not as bleak as they look right now, however, earlier today, there was a report stating that Goldman Sachs is no longer establishing a trading desk. As a result of this, Bitcoin, which continues to be the most popular cryptocurrency today, lost its value by 10%. Bitcoin was down by $1000 following this report that Goldman Sachs may no longer open the trading desk it had intended on opening previously. Bitcoin facing such a loss in value in a time of 48 hours is a major blow to a market that is already struggling to remain on its feet.
With the fall of the popular currency, the value of all the other currencies also fell. For example, the price of the coin of Ethereum, Ether fell in value by 13 percent as per the latest reports. The coin of Ripple, XRP, has fallen in value by 6 percent and Bitcoin has fallen in value by 12 percent in a short span of twenty-four hours. The fact that the value of Bitcoin has fallen accounts for the reduction in the price of several virtual currencies in the market.
It is common knowledge that the market reacts to the decisions made in the other sectors towards the sector of cryptocurrency. In the October of 2017, it was said by the authorities in Goldman Sachs that it was planning on coming up with a platform that deals with Bitcoin, along with other digital currencies. However, with Goldman Sachs rethinking its initial position on a platform for Bitcoin, a lot of confusion and chaos has been created in the market and therefore the effect of this kind of chaos can be noticed in the manner in which the prices have fallen drastically in a short period of time.
Another reason for the fall of Bitcoin has been the repeated rejections of the Securities and Exchange Commission of the Exchange Traded Fund of Bitcoin. In spite of repeated entreaties from the various sections of the markets, the SEC continues to reject them on the grounds that they might perpetrate malpractice in the sector. Several proposals have been presented to SEC and all of them have been rejected on the similar kinds of grounds, that is, an apprehension of increase of the practice of fraud in this market.
There has been a grave decrease in the value since the past one year and it is being speculated as to what would be the future of this sector. A meeting for the same is going to take place in Vienna, of European Finance ministers. These ministers will discuss key aspects in the sector of virtual currency and what can be done to see to it that there is better future for the field as well as those involved in it.