Goldman – Yes to Crypto Contracts; No to Trading Bitcoins

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by | 3rd May 2018 | 0 comments

Goldman Sachs has decided to offer crypto contracts for a limited number of derivatives such as Bitcoin futures or forward products, but the financial institution is not planning to support bitcoin trading.

So, at least in the short term, you are not going to be able to sell or buy Bitcoins in the United States.

Goldman is worried about the security and how they will fight the battle against the hackers. One thing is offering futures from Cboe Global Markets and CME group, but another is to allow investors to buy and sell Bitcoins with no real options to store it.

According to a person familiar with the matter and talking with Bloomberg, Goldman Sachs plans on crypto contracts are to have its new business on cryptocurrencies “running by the end of June.”

Bitcoin consolidates prices above 9,000

BTC/USD Daily Chart - 03-05-18

After declining to 8,820 on Tuesday, the BTC/USD closed positive Wednesday at 9,258.00, and now it is trading green around 9,260.

Bitcoin is consolidating above the 9,000 against the US Dollar. It seems that the unit is ready to attack the 9,600 area first en then the 9,7780 level.

BTC/USD is still pressured by the 200-day moving average level now at 10,000; however, the unit is also supported by a short-term dynamic support around 8,850 and the 8,720 static support.

Bitcoin opened the month with declines but the crypto bounced back quickly, and it is now positive in May. Previously, BTC/USD closed April with over 30% of gains; however, it is still below March opening price and well below the price paid for the cryptocurrency early in January.

Ethereum: It’s not a security

Joseph Lubin, Ethereum Co-Founder, affirmed that he and other founders “spent a tremendous amount of time with lawyers in the U.S. and other countries, and are extremely comfortable that it is not a security; it never was a security.”

Lubin’s words came after the polemical article from the Wall Street Journal that said US regulators would consider Ethereum as a security.

The Journal pointed out that the Ethereum foundation raised more than 31,000 bitcoin in July 2014 and as investors were speculating on a price rise after the launch, it would seem like a security or a stock.

If regulators call Ethereum as a security, it would hit hard the ETH/USD, especially after the CFTC decision to consider Bitcoin a commodity, and not subject to rules set by the SEC.

Ethereum jumps to fresh highs after recovering 15% in three days

ETH/USD Daily Chart - 03-05-18

ETH/USD opened Thursday with a strong note as the unit jumped above the 710.00 level and it is now trading at 721.00, around 5% positive on the day.

Ethereum is performing its third positive day in a row as the pair got a hit on Tuesday amid news from US regulators scrutinizing the cryptocurrency. ETH/USD fell as low as 627.00, but it managed to recover to 725.00, a 15% jump in just three days.

If Ethereum manages to consolidate levels above the 710.00, it will face next resistances at 750.00, March 10,11 and 12 highs; 790.00, a confluence of selling areas; and the 800.00 level. All that, before attempting to test the 900.00 significant level.

To the downside, if the unit doesn’t hold above the 710.00, it will fall to 630.00 again, before going on full steam to 564.50 and the psychologic 500.00 level.

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