Unfortunately, a crypto crash is still on. Since its peak at the beginning of the year, about $700 billion has been lost. In 2017, Bitcoin was close to the $3,000 price mark. Although, this was far less than its peak of about $20,000.
Bitcoin Futures Withheld
Over time, some Wall Street firms have been rumored to be preparing entries for the cryptocurrency market. However, most of them have withdrawn due to the decline in crypto prices. Most firms have delayed their launching of Bitcoin and other related financial services. Firms like Goldman Sachs, Morgan Stanley, Citigroup, and Barclays, according to Bloomberg.
Goldman was among the first on Wall Street to clear Bitcoin futures. According to reports, they were preparing a trading desk and offered derivatives on Bitcoin. The derivative was called non-deliverable forwards (NDF). It is yet to offer crypto trading and has little interest in the NDF product.
Currently, the bank is yet to offer to a trade of crypto and has gained little traction for its NDF product. It has only signed up 20 clients. Justin Schmidt was hired to head the digital-asset business. He said at an industry conference last month that regulators are limiting what he can do.
However, Goldman plans to include a digital-assets expert to its prime brokerage division. According to Sources, Morgan Stanley was technically prepared to offer swaps tracking Bitcoin futures since September. But, due to the crash, it is yet to trade a single contract.
According to fillers, Citigroup has not traded any of its cryptocurrency products within existing regulatory structures. It only conducts trade by proxy. Two executives of Barclays hired to explore the nascent industry left the company. Presently, it has no plans to launch a crypto trading desk.
Most of the caution has been due to the crash. But, some factors include a lack of guidance from regulators, a large group of criminal and other investigations in the sector.
Bearish Situation Not The End
According to Bloomberg, believers in cryptocurrency remain confident. They believe that big financial institutions are still building the infrastructure to get into the market. This could also solve the problem with plummeting prices of major coins like bitcoin.
Some sections believe the crash is an opportunity to eliminate the scammers in the market. It can also be an opportunity to reduce price volatility.