Bitcoin price crash: Cryptocurrency plunges in value – 3% drop in 24 hours | City & Business | Finance
The cryptocurrency’s value has dropped nearly four percent to $56,300, according to trading website CoinDesk. The world’s popular most cryptocurrency has surged so far in 2021, hitting a high of $60,700 on March 13. Bitcoin’s price had been as high as $59,000 at 1.29pm on Tuesday and had edged within touching distance of $60,000 last Friday. But it has largely been on a downward spiral since then, rising slightly on rare occasions before falling sharply again.
The wild fluctuations in Bitcoin’s price come with the boss of one of the world’s largest investment banks providing a huge boost to the future of the cryptocurrency.
The bank’s CEO David Solomon forecast a major transformation in how the US government regulates Bitcoin and other digital assets over the coming year.
He told CNBC’s ‘Squawk Box’: “I think there’ll be a big evolution as to how this evolves in the coming years.
“I’m not going to speculate on where the rules will go for regulated financial institutions, but we’re going to continue to find ways to serve our clients as we move forward.”
Mr Solomon said Goldman Sachs is proactively thinking about the digitalisation of money.
He said: “There are significant regulatory restrictions around us and us acting as a principle around cryptocurrencies like bitcoin.
“But we can help clients facilitate custody positions in digital assets.”
The Goldman Sachs boss added the investment bank is also looking at ways to support demand that could arise in this space.
He added: “That’s the lens that we’re really looking through.”
Last week, Goldman Sachs’ global head of digital assets Mary Rich revealed to CNBC its private wealth management division is edging closer to offering Bitcoin exposure to clients with portfolios of at least $25million.
But last month, an expert claimed Bitcoin could be “outlawed” in the US because the Government does not want other “monies to be operating or competing”.
Bridgewater Associates CEO Ray Dalio warned the soaring cryptocurrency could be banned as gold was in 1934.
The Gold Reserves Act of 1934 banned Americans from using gold as money.
He said: “Every country treasures its monopoly on controlling the supply and demand.
“They don’t want other monies to be operating or competing, because things can get out of control.
“So I think that it would be very likely that you will have it, under a certain set of circumstances, outlawed the way gold was outlawed.”
However, Mr Dalio also acknowledged both the success of Bitcoin and cryptocurrency overall has “proven itself over the last 10 years”.
He continued: “Bitcoin has proven itself over the last 10 years, it hasn’t been hacked.
“It’s by and large, therefore, worked on an operation basis.
“It has built a significant following.
“It is an alternative, in a sense, store hold of wealth.
“It’s like a digital case. And those are the pluses.”
THIS IS A BREAKING STORY. MORE TO FOLLOW…