Since its inception, Bitcoin (BTC) has become the crypto verse leader and controls 56.3% of the total market share and has become the yard stick to gauge the entire industry performance. The last two months have seen the coin price dip and the ripple effect has seen a total of over $38billion go down the drain in less than one year.
The last 24 hours alone have seen BTC price drop by 3.14% to a low of $6,287 and the selloff is so fast that observers are seeing the coin on its way to trading under the 6K mark. The panic sell-off spans across all major exchanges with a possibility of traders exiting to the less volatile fiat world.
Bitcoin Sell-Off not Sparing Altcoins
The adverse Bitcoin price slump effects have seen other crypto verse players register loses as high as 10% against the market leader. The most hit coins are those will unstable market caps. However, high liquidity coins like Cardano, TRON and EOS have not been spared and are getting hit on the price front.
The BTC drop by 12% from the recent investor comfort zone of $7,100 appears to have been triggered by the usual trader speculation that has contributed to the massive migrations to the traditional currency draining the liquidity vibrancy that the market has been enjoying during the correction period that commenced in February.
Bitcoin Price Drop and the Goldman Sachs Matrix
The last few weeks has seen the media awash with unconfirmed news that Goldman Sachs had “cancelled” the “launch of a BTC” trading desk. Given the rate at which rumors spread on social media, it took a few hours for the market to hit the red trading zones on September 5. This also affected the BTC price and the decline spread to the rest of the market.
The new affected the anticipated entry of institutional funds in to the crypto verse and the short term effects might push the Bitcoin price under the $6K threshold before Q4 comes to a close. This is a big blow to the cryptocurrency industry and shedding off recent gains will mean more time for investors to build enough confidence and re-invest in the market.
Goldman Sachs Clears the Way
Goldman Sachs on their part have steered away from the Bitcoin trading arrangement and instead said they are focusing on a custodial outfit for cryptos that will enable high profile investors enter the crypto-sphere and invest. This could be a he boost for the market since what lacks at the moment are large scale investments that will bring back the $38billion that the market has shed in the recent months.
While responding to the report, a Goldman executive was quoted as saying:
“In response to client interest in various digital products, we are exploring how best to serve them in the space. At this point, we have not reached a conclusion on the scope of our digital asset offering.”
Bitcoin Caging Investor Flexibility
Instead of altcoins responding to the market demands, they are swayed by Bitcoin market movements and this has caged investor flexibility in the market. When investors panic, a sell off ensues and this drives prices down while Bitcoin market dominance shifts slightly and translates to other coins loosing or gaining.
Bitcoin appeal to large scale investors has locked out retailers and this has affected the market resulting to unanticipated loses which might see Bitcoin fall victim and drop under $6,000. In the vent Goldman Sachs et al steps in, high profile investors will still remain locked out longer.
Trader sell pressure has been building up and easing off of the same on 5th September will see the market continue to bleed. The mantra that prices will only go up or down appears to be coming true and Bitcoin can only head to the potential $8,000 or a low of $6,000.