As the market decline continues, Bitfinex on September 7 reported that the number of short orders placed on the Ether (ETH) hit a new all-time high during Friday's trading session.
Most of the altcoins in the market cap range suffer from average losses with an interval of 9-12% before the press time.
According to the bank, "Such plans are not a priority right now and the bank would rather focus its energy on a custody product for crypto that would better cater to large institutional clients". In recent weeks several Goldman executives have stated that there are many regulatory developments that are yet to materialize, without which a regulated bank can not be allowed to trade crypto.
The biggest problem for financial institutions that want to buy and sell bitcoin is that the centralized exchanges the asset trades on have a history of being vulnerable to hacks. These would likely help protect the bank from the risks associated with trading and holding cryptocurrencies. So far, Goldman has apparently not been able to do that. The Winklevoss have been strong Bitcoin ETF advocates, and have even supported the creation of the Virtual Commodity Association (VCA) - an association directed by the Winklevoss twins with the aim of having Bitcoin being legally traded on Wall Street.
"We have not reached a conclusion on the scope of our digital asset offering", Goldman Sachs.
Goldman, however, is considering other projects to drive institutional investment in cryptocurrencies. One crypto writer, Tanya Abrosimova, said that the drop could be attributed to attempts to regulate the global crypto market, which may have spooked investors.
Its forays into the space date back to 2015, when Goldman was part of a $50 million funding round with digital payment platform Circle. This comes after last month's decision by USA regulators to reject another round of Bitcoin exchange-traded fund proposals.
The Wednesday Bitcoin price crash following the pessimism expressed by Goldman Sachs is an excellent example of how vulnerable the Bitcoin market is, and why it is necessary for investors to proceed with extra caution.