What happened

Shares of e-commerce and blockchain specialist Overstock.com Inc. (NASDAQ:OSTK) declined 10.3% on Wednesday amid a broader pullback in cryptocurrency stocks after a report that Goldman Sachs (NYSE: GS) is no longer planning to launch a cryptocurrency trading desk.

For many, the desk would have signaled a notable vote of confidence while lending a tone of legitimacy to the future of cryptocurrencies and cryptocurrency trading. Alas, the price of bitcoin plunged more than 12% on Wednesday in response to Goldman's move, dragging down a handful of related crypto and blockchain technology names.

Blue-and-green stock market charts indicating gains

IMAGE SOURCE: GETTY IMAGES.

So what

According to a report from Business Insider, Goldman Sachs is concerned with the "uncertain regulatory landscape" for cryptocurrencies. Instead -- and with the caveat that it may open such a trading desk in the future if the situation changes -- Goldman is shifting its efforts on other ways to participate in the cryptocurrency markets, potentially including a custody product that would allow them to better cater to large institutional clients interested in the space.

Of course, this news doesn't directly affect Overstock as it pertains to advancing its own blockchain enterprises segment. It's worth noting, though, that the company is currently exploring strategic alternatives for its e-commerce operations, including a potential sale of the segment to allow Overstock to hone its focus on its blockchain and cryptocentric technologies.

Now what

Assuming Overstock is successful in divesting its e-commerce business, however, that also means it will have effectively narrowed its scope to become wholly dependent on the industry that Goldman Sachs seemingly snubbed yesterday. Consequently, with no shortage of crypto developments filling the news feeds these days, Overstock investors would do well to grow more accustomed to this kind of volatility going forward.

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.