Bitcoin, the largest cryptocurrency, tumbled as much as 9.8 per cent and was trading at US$6,480, down 6.8 per cent, as of 10 a.m.in NY, according to Bloomberg composite pricing.
The crypto market is struggling to keep above the waters after Goldman Sachs made a decision to withdrawal its support for plans to launch a crypto trading platform.
Cryptocurrency-Despite reports surrounding a potential cryptocurrency trading desk by Wall Street goliath Goldman Sachs-and its subsequent closure-the company has since come out to debunk any such reports.
"A lot of retail investors' hopes for a bigger institutional presence were really being driven by Goldman Sachs", Stephen Innes, head of trading for Asia Pacific at Oanda Corp., said by phone from Singapore. "We're listening to our clients and trying to help our clients as they're exploring those things too".More news: Razer Phone Successor Confirmed by Company, Will Integrate PC Services
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The overall market capitalisation of virtual currencies has lost three-quarters of its value since its January peak, according to Coinmarketcap, slumping from $800bn to around $200bn now.
Things started getting better for the market when large institutions like Goldman Sachs started showing signs of embracing the digital assets, and that somehow breathed some life into the market and kept it on a high over the last few weeks. 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.
Goldman Sachs, however, isn't saying anything definitive for now.
Goldman Sachs has taken some steps in cryptocurrencies, including recruiting Justin Schmidt from hedge fund Seven Eight Capital. "They were not a part of the ecosystem yet, but to the extent that they represent the institutional herd, this is a negative", Kelly added.
The bottom appears to have fallen out of the cryptocurrency market with Bitcoin losing nearly $1,000 in just twenty four hours.
The cryptocurrency market is bleeding for the second consecutive day, with prices of most popular coins down double digits in the last 24 hours.