This week has made a record of the severe crash in cryptocurrency market. On August 29, the number dropped and the total market cap went below $12 billion. The Bitcoin price ended the day with a massive drop of 14 to 15 percent. This dwindling number of Bitcoin made a financial loss of around $570 (per Bitcoin).
The experts so far mainly experienced the potential of digital currencies which usually maintained a trend of price augmentation. Even on Tuesday, there was a stability of Bitcoin price between $7,200 and $7,300, whereas the experts believed that the next target would lie between $7,500 and $7,600 area.
The reason why the cryptocurrency crashed is not totally clear. However, the experts believe that this sudden dip in the market may be the outcome of the financial giant Goldman Sachs’ announcement to unveil a cryptocurrency trading desk. Although the New York City-headquartered multinational investment bank has not revealed its plans officially, presently it has kept everything on hold to fathom the ongoing uncertainty in the cryptocurrency market. In December last year, a buzz created headlines that Goldman Sachs would be setting up a cryptocurrency trading desk by the completion of June 2018.
The sudden crash in the crypto market has affected all cryptocurrencies and Ethereum is among the worst hit. From $0.33, Ripple confronted a dip to $0.28, a drop of over 15 percent. On the other hand, as of Saturday, September 8, the Bitcoin price stands at $6,521, and the live CoinMarketCap shows a constant trend of downfall.
Regardless of the specific cause behind this massive downfall, the fate of cryptocurrency market is expected to achieve its height once again. Industry Leaders reported that unless Securities and Exchange Commission (SEC) comes to a decisive standpoint on some proposed ETFs for Bitcoin, it is quite tough to determine whether the cryptocurrency market would thrive or continue devaluing.
The recent joining of Elad Roisman as the new member of SEC (succeeding Michael Piwowar) is expected to enhance the possibility of Bitcoin ETF approval, as reported by CCN. He also ensured that he and his team members “are working as intended in line with the agency’s mission,” and experts believe that this endeavor will be in favor of Bitcoin ETF approval. In other words, a positive SEC response means the direct reverse of the present cryptocurrency crash and falling of Bitcoin price.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]