Crypto bloodbath continues following Goldman roll-back

September 06, 2018
Chris Wheal

The crypto bloodbath continued unabated for much of today. Shortly before 3pm bitcoin was down to $6,220, a -7.78% drop while ethereum was looking considerably more damaged, down -12.1% in total over the past 24 hours to $228 (earlier it had dipped to close to $210). 

Eos and Litecoin were down -11.8% and -10.3% respectively while IOTA was also highly bruised, absorbing a -11.5% plunge. 

Ethereum on fire

The complete battering ethereum has taken is more of a surprise given its multi-use utility compared to bitcoin and other cryptocurrencies. The next – assuming the valuation collapse continues – significant price level for ethereum would be $200. 

A bad trading day for ethereum – but a buying opportunity for some

As ethereum has hovered close to $1,400 in the past these new sell numbers are significant – though some bargain hunters will waste no time in replenishing supplies.

More ‘sell’ levels loom?

For bitcoin, the next – lower – significant level would be $5,000. Much of the sell-off – valuations are now close to a nine-month low – is attributed to the news that Goldman Sachs had shot down plans for a crypto trading desk.

“At this point, we have not reached a conclusion on the scope of our digital asset offering,” Goldman Sachs spokesperson Michael DuVally informed Business Insider yesterday.

Goldman Sachs says no conclusion reached – a bad support sign

However the crypto market still remains crowded with institutional interest – from the sidelines at least. 

Note: at the time of article publication (3.25pm) some crypto valuations were seeing a slight recovery.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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