The bitcoin price went into freefall this morning, despite good news for bitcoin adoption from the growing Lightning Network, as investors get cold feet ahead of the U.S. Security and Exchange Commission’s (SEC) decision expected later this month on whether to grant approval for a bitcoin exchange-traded fund (ETF) — something the SEC has previously rejected due to fears around bitcoin’s wild price swings and price manipulation.
Bitcoin fell by some $500, or 5%, in just a matter of minutes, according to CoinDesk data, and taking the bitcoin price under the psychological $7,000 mark.
The sharp fall in bitcoin price comes after unconfirmed reports from Business Insider that U.S. investment bank Goldman Sachs is ditching plans to open a desk for trading cryptocurrencies due to the murky regulatory landscape.
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, according to people familiar with the matter.
In response, the bank released a statement: “We have not reached a conclusion on the scope of our digital asset offering,” it said.
Regulators around the world have been grappling with how to properly regulate bitcoin, cryptocurrencies, initial coin offerings (ICOs) and cryptocurrency exchanges. Last year the SEC warned that some of the coins issued in ICOs could be considered securities, meaning trading them would have to comply with federal securities laws.
This post credited to forbes Image source: Getty Image