CryptoWatch: Cryptocurrencies plunge amid report Goldman is putting crypto venture on hold

CryptoWatch: Cryptocurrencies plunge amid report Goldman is putting crypto venture on hold

A crypto rally came to a halt early Wednesday morning in New York when major digital currencies slumped—some coins losing as much as 10% in less than an hour—as a report about a shift in interest in the market at Goldman Sachs rattled investors.

Bitcoin, the worlds biggest digital currency, fell more than 5%, trading back below $7,000 to an intraday low of $6,938.10. A single bitcoin BTCUSD, -6.03%  last changed hands at $6,990.35, down 5.1% since Tuesday at 5 p.m. Eastern on the Kraken crypto exchange.

BTC/USD 15-minute chart

The move came after a report from Business Insider said that Goldman Sachs GS, +0.21% as put a hold on its plans to open a cryptocurrency trading desk, citing people familiar with the matter.

In an email to MarketWatch, Goldman spokesman, Michael DuVally said: “ At this point, we have not reached a conclusion on the scope of our digital asset offering.”

In early May, the bank told the New York Times that it would be opening a cryptocurrency trading desk to allow its customers to trade bitcoin as a non-deliverable forward.

Read: People are making more than 500% buying property that doesn’t actually exist

Ether remains on the back foot, falling 10%

The struggles of Ether, the digital currency that runs on the Ethereum network, continue following further negative news, this time suggesting Ether miners could take payment in other digital currencies.

“Vitalik agreed that it was possible for miners to take payment in other currencies on ethereum, but he did not agree that the collapse of Ether is inevitable,” said Mati Greenspan, senior market analyst at eToro.

“A lot of people took it way out of context, it’s just a thought experiment at this stage,” Greenspan said.

Ether ETHUSD, -13.99% was trading at $256.98, down 9.8%, Bitcoin Cash BCHUSD, -15.03% was down 10.9% to $560.50, Litecoin LTCUSD, -11.39% was off 8.5% at $62.19, and Ripple’s XRP coin XRPUSD, -13.43% was trading at 30 cents, down 9.3%.

Bitcoin futures have tracked spot markets lower Wednesday. The Cboe Global Markets Group Inc.’s September contract XBTU8, -6.33% was down 4.7% at $7,005, while the CME Group Inc. September contract BTCU8, -6.33% was trading 4.6% lower at $7,105.

Read: Did you forget about bitcoin? Here’s what’s going on

Providing critical information for the U.S. trading day. Subscribe to MarketWatch’s free Need to Know newsletter. Sign up here.

Related posts