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Wall Street Getting Cold Feet on Bitcoin as Crypto Crash Continues

Alan Muli

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According to reports, about $700 billion has been wiped off the market. This has been so since the cryptocurrency peak was witnessed beginning late 2017 and early 2018. The crypto crash continues and left behind is a trail of destroyed cryptocurrency startups. Bitcoin has had a torrid year and at one point traded close to the $3,000 price mark, which was well miles below its $20,000 peak in 2017. Wall Street firms once rumoured to be preparing entries to the cryptocurrency market –particularly Bitcoin- appear to have gotten cold feet after a brutal meltdown in crypto prices this year.

Delayed Bitcoin launch

A number of major firms including Goldman Sachs, Morgan Stanley and Barclays (of London) have all delayed plans of launching Bitcoin-related financial services. Morgan Stanley has been technically prepared to offer swaps tracking Bitcoin features since September but is yet to trade a single contract.

Citigroup has not traded any of its cryptocurrency products within existing regulatory structure, instead, it only conducts trades by proxy. Barclays lost two executives hired to explore the industry and it has no plans to launch a crypto trading desk. Firms have been exercising caution due to the crash. Other factors such as lack of guidance from regulators crypto-related criminal and fraudulent activities have also discouraged wall street firms from launching crypto-services.

Cryptocurrency faithful remain firm that the big financial institutions are still building the infrastructure to get into the market. The infrastructure will rescue the plummeting prices of major coins like Bitcoin. Some industry sites have seen the crash as an opportunity to clear out scammers.

According to Ben Sebley, “The more important story is all the infrastructure that’s being built now to enable institutional trading.” Sebley is the former Credit Suisse Group AG trader and is now the head of brokerage at crypto boutique NKB Group.

Even after the plunge that knocked off $700 billion from the value, crypto assets believers are still strong and maintain their faith in digital currency.

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