- Goldman Sachs CFO Marty Chavez says that the news was fake.
- The recovery is nowhere to be seen.
On September 5 some major media outlets including Bloomberg published the news that Goldman Sachs had dropped the plans to develop a trading desk for cryptocurrencies. The news spread like fire, causing an epic collapse on the markets with Bitcoin losing over 15% in two days and the total crypto market value dropping by $12B.
However, the market players seem to have fallen for another portion of fake news as Goldman Sachs CFO Marty Chavez denied the information, while at the TechCrunch Disrupt Conference, on Thursday:
“I was in New York yesterday and I was co-chairing our risk committee, and I saw the news article. 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,” he said.
Chavez also added that there is no timeline for the trading desk launch as the research and explorations take time. Also, Goldman Sachs is engaged in developing Bitcoin derivatives to satisfy the clients’ needs. The bank will focus on non-deliverable forwards.
“The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they’re settled in U.S. dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges.”
So Goldman is still in the game, but the market seems to be sceptical. All major coins are rangebound and it is possible that the harm done by the fake news won’t be recovered quickly. This reaction is interesting in itself as it may mean that the traders and investors see the glass half empty.
Bitcoin is tracing at $6,450; ETH resumed the downside to trade at $222, losing nearly 1% on a daily basis; XRP is at $0.2920, off the early Asian high at $2,997.
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