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.
Chavez spoke at the TechCrunch Disrupt 2018 conference about how customer interest determines which new disruptive technology becomes widely adopted by the mainstream - a conversation very appropriate in relation to cryptocurrencies like Bitcoin and its underlying blockchain technology.
Near 1400 GMT, the cryptocurrency was trading at around $7,000, down about five percent from Tuesday's level.
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.
While still industry-forward, the firm did not explicitly say they were working on launching a Bitcoin trading desk. So far, Goldman has apparently not been able to do that.
Some believe it could position itself well in the eyes of Wall Street with a combination of a custodial service and Bitcoin futures trading. "At this point, we have not reached a conclusion on the scope of our digital asset offering". This project would involve Goldman's holding a large supply of digital currency and, potentially, tracking price changes for significant clients.
Speculation about Goldman and crypto goes all the way to a year ago, when most considered its entrance to be a matter of time. In addition, in April this year, Goldman brought Justin Schmidt on board as its head of digital assets markets.
He added: 'The regulatory environment is going to be key to all of this and the fact that Goldman Sachs remains so concerned is clearly a blow'.
Its forays into the space date back to 2015, when Goldman was part of a $50 million funding round with digital payment platform Circle. The news sparked a bloodbath in the market for Bitcoin and other virtual coins, as it signaled a weakening of institutional support for cryptocurrencies at an early and vulnerable stage of their development.
This news top the market by sudden surprise and everyone started dumping coins across the board assuming that this move by Goldman would mean there would be no institutional money flowing into the crypto market.