Crypto Slump Intensifies as Market Jitters Fuel Sell-Off

Cryptocurrencies experienced a significant decline on Thursday, with Bitcoin dropping by 8.82% to $6,416.60. Ethereum and other altcoins, such as XRP and Litecoin, also faced substantial losses. Financial institutions like Goldman Sachs are reassessing their involvement in the crypto market, while the prospect of increased regulation and a crackdown on anonymity raises concerns among crypto enthusiasts. Meanwhile, the price of Bitcoin in Iran surged to a record high of $24,000 on the EXIR exchange, reflecting the potential for alternative currencies to facilitate trade in the face of economic sanctions.

Cryptocurrencies Witness Steep Declines Amidst Market Uncertainty

London, United Kingdom - Cryptocurrencies have experienced a significant downturn on Thursday, continuing a global selloff fueled by concerns about the longevity of the bear market in the cryptocurrency space.

Bitcoin, the leading cryptocurrency, plunged 8.82% to $6,416.60 on the Bitfinex exchange as of 8:57 AM ET (12:57 GMT). This drop brought it close to its earlier low of $6,366.60.

The overall cryptocurrency market capitalization also declined, with the total market cap hovering around $202 billion at the time of writing, compared to $239 billion on Wednesday.

Ethereum, the second-largest cryptocurrency by market cap, witnessed a substantial drop of 14.97% to $224.24. XRP, the third-largest virtual currency, experienced a 7.37% decline to $0.28313, while Litecoin fell by 13.06% to $54.995.

Goldman Sachs Retreats from Bitcoin Trading Desk Plan

Financial giant Goldman Sachs has reportedly shelved its plans to establish a Bitcoin trading desk. Instead, the institution will focus on other cryptocurrency-related initiatives, such as holding digital coins on behalf of large fund clients. The bank has indicated that it may reconsider a trading desk in the future.

Goldman Sachs's decision highlights the waning interest in Bitcoin after its precipitous decline from its peak of nearly $20,000 in December. The cryptocurrency has lost almost 70% of its value since then.

ShapeShift Introduces Personal Information Requirement

Trading platform ShapeShift announced on Tuesday that it will begin requiring users to provide personal information. This move has raised concerns among cryptocurrency enthusiasts that other platforms will follow suit. Anonymity and decentralization from government control have long been key selling points for Bitcoin and other cryptocurrencies. However, as regulators worldwide grapple with oversight of the sector, this could change.

Iran Recognizes Cryptocurrency Mining

In a separate development, the price of Bitcoin in Iran reached a record high of $24,000 on the Iranian exchange EXIR. This surge was prompted by news that the Iranian government has recognized the mining of digital coins as an industry. The Central Bank of Iran is expected to draft a policy framework for cryptocurrencies in the coming weeks. The government hopes that the potential use of alternative coins will facilitate trade between Tehran and its partners amidst renewed U.S. sanctions.

The cryptocurrency market remains volatile, with both positive and negative news impacting its performance. As regulators and financial institutions continue to navigate the evolving landscape, the long-term future of cryptocurrencies remains uncertain.