FUD about Goldman Ditching Bitcoin Leads to a Sell-off in Crypto Market

FUD about Goldman Ditching Bitcoin Leads to a Sell-off in Crypto Market

Well everyone is aware that cryptos react to news pretty quick but what many people fail to notice is that they react to FUD (Fear, uncertainty, and doubt) news even quicker. This was clearly seen when some portion of Mainstream Media termed Goldman’s shift in crypto strategy as Goldman Sachs is abandoning crypto which leads to a good sell-off in the market.

The Media FUD news around a big name seems to be a perfect recipe to pull down the markets

Well if you are a trader on an investor in cryptocurrencies, last 24 hours would have been a situation of turmoil for you. The news screen, livewires, and all social media handle, be it small or big, were full of one news- Goldman Sachs ditching crypto markets. While a news of name as big as Goldman Sachs, whose views change the course of a lot of institutional monies, pulling out of cryptocurrencies is sure to give tremors, but what most of the media, in haste of giving out the news first, failed to record that Goldman Sachs hand not pulled out of cryptos. What the actual news highlighted was that Goldman Sachs has had a change of strategy and would be concentrating on Crypto Custody over Crypto Trading as they believe Crypto Custody is a key business for driving Wall Street investment in crypto.

But the way the news was portrayed by some publication and media, it created a panic in the fragile crypto markets taking Bitcoin (BTC) down over five percent in the last 24 hours. The news affects the altcoins even more with Ethereum (ETH) (down 14 percent), XRP (down 13 percent), EOS (down 16 percent) and Litecoin (LTC) (down 11 percent), according to data from Coinmarketcap.com captured sometime after the news surfaced

This incidence of Goldman Sachs news was put forward by leading journalist Joseph Young who tweeted saying that he was speechless as to how a long-term positive news is portrayed by media as a steep negative.


Also, read: Bitcoin Bull Run Already Started in Iran with BTC Hitting ATH as Rial Plunges Hard

Goldman Sachs shifts strategy from crypto trading desk to crypto custody- A long-term positive

According to reports published in Business Insider, Goldman Sachs is ditching plans to open a desk for trading cryptocurrencies in the foreseeable future, according to people familiar with the matter, as the regulatory framework for crypto remains unclear. As part of that decision, Goldman has moved plans to open a desk for trading cryptocurrencies further down a list of priorities for how it can participate in cryptocurrency markets, the people said. What is the most important part in the news is that Goldman is focusing on other projects such as a custody product for crypto, which would mean that the bank holds cryptocurrency and, potentially, keeps track of price changes on behalf of large fund clients? If market experts are to be believed that this step is necessary for large institutional firms to get comfortable trading bitcoin, there need to be reputable custody offerings to safeguard holdings.

While Goldman Sachs may not be directly infusing monies in the crypto market, but its defiantly working on the infrastructure and the ecosystem that is crucial for institutional monies to flow into crypto markets. Once this custody operations are ready and operate smoothly, Goldman would be in a better position to place its bets in cryptos on behalf of its clients.

This misleading reports in media have again left an important lesson for traders, investors and followers to choose your sources right and rather than just the following news blindly, have your analysis and judgments in place before taking investment decisions.

Is strategic move for Goldman Sachs actually positive for the long term? Do let us know your views on the same.

The post FUD about Goldman Ditching Bitcoin Leads to a Sell-off in Crypto Market appeared first on Coingape.

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