Cryptocurrency market update: Bitcoin leads crypto carnage, Ethereum and Ripple-victims of circumstance

 Bitcoin fell like dead weight in the air yesterday ignoring the news that adoption is rising following the growth of the Lightning Network. Institutional investors, on the other hand, seem to be retreating as the U.S. Security and Exchange Commission (SEC) decision on a Bitcoin exchange-traded fund (ETF) nears. The authority is going to approve or disapprove a Bitcoin ETF proposal on September 30. The authority rejected another ETF citing high volatility and fears of price manipulation.

Bitcoin spiraled down after trading highest level in September close to $7,400. The declines were unstoppable at the $7,000 while the previous support at $6,800 did little to halt the drop. Bitcoin found a balance around $6,300 but further declines are imminent unless a support above $6,400 is established in the near-term.

The freefall was triggered by the news that Goldman Sachs has shelved on the plans to open a cryptocurrency desk. The news first appeared on Business Insider and stated that the financial investment guru is retreating due to the shaky regulation landscape. Business Insider wrote in the report:

“Goldman has moved plans to open a desk for trading cryptocurrencies further down a list of priorities for how it can participate in cryptocurrency markets, according to people familiar with the matter.”

Forbes also reported that the Goldman Sachs said in a statement that "We have not reached a conclusion on the scope of our digital asset offering."

Bitcoin was riding on the wave and news that institutional investors are intending to bring a fresh influx of money into the market. However, the retreat of Goldman Sachs makes one wonder if the funds will make it to market. Goldman Sachs had assured the cryptocurrency industry of its involvement with digital assets. Besides the CEO of the bank David Solomon said in an interview that the company has to "evolve its business and adapt to the environment."

Another trigger that could have added fuel to the fire is the announcement that ShapeShift; a Bitcoin exchange was going to start registration and in turn reducing anonymity.

Bitcoin was not the only one hit by the declines, Ethereum, Ripple, EOS and most of the top 20 cryptocurrencies became victims in the crypto bloodbath. Ripple rejected the support at $0.30 but found a balance above $0.26 staying away from the previous support at $0.24. Ethereum tanked more than 10% to trade in the levels of September 2017.

Read more on Ripple price analysis here.