Bitcoin Price Remains Under Pressure After Goldman Sachs Squashes “Fake News”

Bitcoin’s price remained locked in a downtrend Friday even as Goldman Sachs squashed rumors that it was scrapping plans for a cryptocurrency trading desk.

BTC/USD Update

The bitcoin price was down 2.2% at $6,377 on Bitfinex. The leading digital currency traded as high as $6,549.50 overnight before sliding all the way back down to $6,322.80. In the process, BTC formed a double-bottom with Thursday’s low of around $6,302. An RSI of 22 indicates that bitcoin is significantly oversold following the latest downtrend.

At current prices, bitcoin has a total capitalization of $110.7 billion, which gives it 54.7% of the entire market. BTC trading volumes amounted to $4.5 billion on global exchanges.

The broader cryptocurrency market continued to trade near three-week lows. Ethereum, the second largest crypto by market cap, was down 2.7% to $220, a new 12-month low.

At press time, digital currencies were collectively valued at $202.3 billion, according to CoinMarketCap. Total trade volumes were $13.3 billion after climbing to a high near $20 billion on Thursday.

“Fake News”

Goldman Sachs’ chief financial officer Martin Chavez said that a recent report about the company dropping its plans to offer cryptocurrency trading is “fake news.” The original report, which was released by Business Insider, indicated that the Wall Street mega bank was shelving a proposed cryptocurrency trading desk amid regulatory uncertainty. Citing private sources, the report said Goldman was diverting its efforts to creating a custody solution to keep institutional capital safe.

“I was in New York yesterday and I was co-chairing our risk committee, and I saw the news article,” Chavez said at the TechCrunch Disrupt summit on Thursday. “It wasn’t like we announced anything or that anything had changed for us… I never thought I’d hear myself actually use this term, but I’d really have to describe that as fake news.”

By the time the report hit the newswire on Wednesday, the cryptocurrency market was already in the process of declining. The report, however, triggered a bigger landslide in the bitcoin price, which eventually bottomed near $6,300. Last week, BTC peaked north of $7,400.

Speculation that Goldman Sachs was planning to create a cryptocurrency unit was initially reported by Bloomberg in December. Over the past nine months, multiple reports linking Goldman to bitcoin futures and a crypto trading desk have also surfaced.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Chief Editor to and Contributor to, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi