Bitcoin prices declined by almost 15% within 24 hours on 6th September 2018. The giant cryptocurrency was not the only one affected, although, since the trend was reflected by other digital currencies and tokens as well.
The Force Behind the Tanking
The exponential deterioration across the crypto sector can likely be linked to two changes: Goldman Sachs’ verdict to adjourn its plans to launch a cryptocurrency business desk, and issues surrounding the big business platform- ShapeShift- now demanding cryptocurrency users to refresh their personal information.
The outcome of these aspects is a weaker-than-expected cryptocurrency transaction in the next few weeks, supporting the forecast that the value of BTC is not likely to hit the $10,000 mark at the end of 2018.
Bitcoin (BTC) Price Today – BTC / USD
The Influence of Goldman’s Policy of Adjourning Cryptocurrency Business
One of the major forces behind the rise of BTC prices in the recent past is the clue that the traditional financial sector is preparing to invest in the crypto industry. Goldman Sachs aroused the interest of depositors internationally when it declared its intentions to set up a crypto business desk early this year. Although many financial institutions are cautious about cryptocurrencies, many of them were anticipated to trail Goldman Sachs into the crypto space. This would have brought a remarkable growth in the cryptocurrency market because of the huge base of financial investors aligned with financial institutions.
The Influence of ShapeShift’s Registration Strategy
ShapeShift is a common platform which enables crypto users to transact and swap between various digital currencies. Lately, the firm chose to enact a membership model- demanding its users to update their personal data for the smooth running of its business. Though the company claims the strategy will facilitate its multi-tiered loyalty plan, the change is also evidently intended at the growing regulatory requirement that has ignited anxieties of the easy of applying cryptocurrencies for money laundering and other illegal businesses.
How the Two Factors Influence the Price of BTC
Just like the price of other commodities, BTC’s ultimate value is pegged on demand and supply. BTC demand is determined by two aspects: number of BTC users, and the sum of their transactions. On the supply part, the number of existing BTC is capped, and more than three-quarters of the capped percentage has been mined.
So, what is the Future of BTC in the Coming Months?
Since Goldman has no intention of launching its cryptocurrency business desk anytime soon, the institution wants to act as an overseer in the crypto space, the price of BTC is unlikely to hit the $10,000 forecast at the end of 2018.