On Thursday, 6th September, financial experts spoke to Bloomberg about the multiple cryptocurrency markets crashes over the past 24 hours, with legitimacy issues and insecurities being painted as the culprits for the ‘crypto wreck’.
Lawrence Shover of SFG Alternatives spoke about how a major obstacle in the path of Bitcoin [BTC] and other cryptocurrencies was the pullout of the Bitcoin trading desk plan put forth by Goldman Sachs. Officials close to the banking behemoth had earlier stated that the organization has pushed down the establishment of the Bitcoin trading desk on its list of priorities, and is focusing on other ways to participate in the cryptocurrency world.
The discussion on Bloomberg touched upon how the week before showed a sign that Bitcoin may stay stable above the $7000 mark, a bullish call in a severely bearish market. At the time of writing, Bitcoin [BTC] was trading at $6467.57 dollars still dropping at a rate of 7.29%. The cryptocurrency held a market cap of $111,583 billion and a 24-hour market volume of $5.871 billion. The only silver lining that market watchers could observe during this crash fest was that Bitcoin was maintaining a steady linear hold above the $6400 mark in the past 14-hour window.
Shover went on to say that the Bitcoin market was very much dominated by speculators and volatility with the onus being on the latter. To a question that glazed over the fact that the cryptocurrency may fall to the $6000 mark or not, Shover emphasized on the sheer desperation in the market for legitimacy. He also added that when a major company like Goldman Sachs deserts a volatile currency like Bitcoin, the market scare is fairly predictable.
The financial analyst then spoke about the emerging markets and how it plays a pivotal role in Bitcoin’s rise and fall. The recent Iranian sanction and the move by the IEA are also at the center of the Bitcoin machine. Iran had recently announced that they will begin to treat cryptocurrency mining as an industry. This sudden move came in the wake of increased pressure on Iran that occurred after the tectonic financial decisions sanctioned by the United States.
Shover also added that the oil prices will play a significant role in the market and that by the end of the year, the price of oil will hit the low 60s.