Bitcoin down 10% + on fake news - you can't make this stuff up
Total News - Atlanta, GA 9/6/2018 - If you are following the FIX at 4, we had noted that the drop was for unknown reasons but the market was 'saying' that Goldman was getting out of crypto, when today Goldmans CFO said that was 'fake news' at a conference. You can't make this stuff up! Bitcoin is down 10% on 'fake news' - here's what Goldman's CFO had to say:
A top Goldman Sachs executive looked to clear the air Thursday about the bank's cryptocurrency ambitions after reports that it was abandoning plans to open a trading desk for cryptocurrencies. "I never thought I would hear myself use this term but I really have to describe that news as fake news," Goldman Sachs Chief Financial Officer Martin Chavez said on stage at the TechCrunch Disrupt Conference in San Francisco. The CFO said Goldman is working on a type of derivative for bitcoin because "clients want it." "The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they're settled in U.S. dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges, Chavez said. The price of bitcoin and other top cryptocurrencies tumbled after the initial report by Business Insider earlier this week. The Wall Street giant has been considering the launch of some sort of cryptocurrency option for clients for the past year. But it's never been quite clear just what the bank was planning.
So there you have it. Unbelievable. That's the only word that comes to mind. We really live in a strange time, when Crypto is the hip investment which melts down on a fake report. It would seem that there is an incentive for unscrupulous traders to create their own fake news, in order to move the markets. But traders wouldn't do that - would they? That's what the SEC wants to protect. The SEC outlined all this in many comment letters, in an unusually rational moment of clarity for the commission.
Before hackers and black hat SEOs go out and start creating fake news farms, why don't we create a series of benchmarks and institutional news feeds for Crypto? -jg