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This is now the 3rd time this year where Bitcoin has made a significant bounce from the $6000 support level only to be pushed back sharply and this time analysts are scratching their heads as to what may be the trigger for the latest plunge.
It was first thought that the reason behind the fall was speculation that Investment giant Goldman Sachs may delay plans for their cryptocurrency trading desk, which many see would be a rebuke for cryptocurrencies by the big money.
“Many have been speculating that this week’s bitcoin price drop was due to the news that Goldman Sachs would be ditching its cryptocurrency trading plans,” said Danny Scott, cofounder of crypto exchange CoinCorner
“A different theory which we have been following ourselves for the last few days comes from a very old bitcoin wallet beginning to move a large amount of bitcoins. These look to be from MtGox which could match up well with their recent announcement that creditors can now open the claims to any lost funds.” He added.
A representative from Goldman Sachs also displaced the theory that the investment bank was behind the fall in bitcoin and as far as he knew, the banks plans for bitcoin were still on track.
“It wasn’t like we announced anything or that anything had changed for us,” said Marty Chavez, CFO of Goldman Sachs.
“I never thought I’d hear myself actually use this term, but I’d really have to describe that as fake news.” He added.
“Many have been speculating that t bitcoin price drop was due to the news that Goldman Sachs would be ditching its cryptocurrency trading plans,” wrote Scott in an email to MarketWatch.
The market now believes the key to bitcoins future will be the big institutional investors like Goldman Sachs and if they begin to accept and legitimize the cryptocurrency there will be a new wave of investors that will follow suite and ultimately drive the price higher.
This will also force regulators such as the Securities and Exchange commission in the US to take a closer look at bitcoin and introduce tighter regulations which will also attract the more conservative type of investors.
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